With 700 Billion we could by every forclosed home in the nation.....and more

[e-brake]

So according to the latest numbers there are 1.2 million homes in forclosure. According to the lending companies the average home price is $212,000.

For 700 Billion dollars we could afford to spend $350,000 on every single foreclosed home in the country, which would bailout the banks and give the tax payers actual property and assets for the money instead of worthless paper. Seems kinda silly to give the banks 700 billion for worthless paper while doing nothing to address the foreclosure problem when we could fix the problem and gain real tangible assets in the process.

[david austin]

i love how its all 'worthless paper'

lolz

[djetaine]

you think its a good idea to give everyone 350,000 dollars? fuck em. Honestly, if you were stupid enough to get pulled into a variable rate mortgage and never refinanced then its your own damned fault. dont buy shit you cant afford. Bailing someone out because they fucked up isn't going to accomplish anything. It's a quick fix but the people will do the same thing over again.

[e-brake]

Originally Posted by david austin

i love how its all 'worthless paper'

lolz

When you are talking about a pile of bad loans written up by shady lenders for con-artist consumers that do not have the ability to repay the loan then it is worthless paper.

If we just spent the same amount of money to pay off those loans, giving the banks a new flood of cash the problem would be fixed faster. Not only would the loans be paid off immediately the tax payers would have an investment in real property that could be rented or sold off for a profit.

[djetaine]

I'm not saying that the 700 billion in new money is right either. I honestly don't know what the answer is, but I don't think either one of the options are it.
Either way, free money (to the banks or the people) is not the fucking answer. I hate this damned country

[e-brake]

Originally Posted by djetaine

you think its a good idea to give everyone 350,000 dollars? fuck em. Honestly, if you were stupid enough to get pulled into a variable rate mortgage and never refinanced then its your own damned fault. dont buy shit you cant afford. Bailing someone out because they fucked up isn't going to accomplish anything. It's a quick fix but the people will do the same thing over again.

Fuck that I would never endorse just giving out the cash to the people. Just pointing out that for the same amount as the bailout the Government could purchase all of the foreclosed homes from the banks. That would mean that the government would own the homes instead of the banks who wrote bad loans or consumers that took out bad loans.

[PETA]

Originally Posted by e-brake

When you are talking about a pile of bad loans written up by shady lenders for con-artist consumers that do not have the ability to repay the loan then it is worthless paper.

The gov't is buying bundled notes - not individual notes. These bundles are not worthless - they have value its just had to determine exactly what the value is. A couple (not exclusive list) of reasons for that... its unknown how well the bundle will perform and its difficult in some cases to determine the value of the secured asset the note was written against.

[david austin]

i think you guys are forgetting that a home is actual property. the notes may not be 'worth' anything in current principle but eventually the properties will sell. at some point the market will find equilibrium and the home values will start to stabilize enough to accurately pin down (for both consumers and lenders) whats worth what.

until then this is clogging up the whole system. i personally dont see a problem with the govt taking these bundles off of the balance sheets for a given price and to my assumption collecting on it later. most of the bad paper falls from 04 to mid 07. the avg note takes 8-10 years to mature. i still think its a win for the govt and a win for the avg consumer who will start to have better access (with proper regulation) to credit. not to mention a massive win for the business side of the credit markets.

again... im not saying this is the ultimate right answer but its not just throwing money away at something thats worthless. the paper is backed. the eventually backing is property... which is always worth something.

my main issue was what to do with the gains and assuring correct oversight to the whole operation.

like i said in another thread. if this wasnt tagged a 'bailout' i think the avg person (who doesnt know jack shit about this) would like it better.

thats why i think it should be called a sovereign asset program. and sold to the public as a govt backing of property.

[DataBass]

We should divide the bailout money evenly amongst the citizens of Tarrant county. Seven hundred billion divided amongst Tarrant County's 1.7 million residents would be approximately 400,000 bucks each. I'd like to receive $400,000 from the federal government and tax payers.

[Deff Gordon]

Originally Posted by e-brake

So according to the latest numbers there are 1.2 million homes in forclosure. According to the lending companies the average home price is $212,000.

For 700 Billion dollars we could afford to spend $350,000 on every single foreclosed home in the country, which would bailout the banks and give the tax payers actual property and assets for the money instead of worthless paper. Seems kinda silly to give the banks 700 billion for worthless paper while doing nothing to address the foreclosure problem when we could fix the problem and gain real tangible assets in the process.

Originally Posted by djetaine

you think its a good idea to give everyone 350,000 dollars? fuck em. Honestly, if you were stupid enough to get pulled into a variable rate mortgage and never refinanced then its your own damned fault. dont buy shit you cant afford. Bailing someone out because they fucked up isn't going to accomplish anything. It's a quick fix but the people will do the same thing over again.

if the houses are in foreclosure, then they are already out of the people's hands that had bought them and owned by the banks. the bailout would be purchasing these assets anyways.

/semantics

[djetaine]

Originally Posted by Deff Gordon

if the houses are in foreclosure, then they are already out of the people's hands that had bought them and owned by the banks. the bailout would be purchasing these assets anyways.

/semantics

Right, but I was commenting on his original statement of giving the houses to the people so that the people would have the asset/property. At least that's the way the post made it sound.

[e-brake]

Originally Posted by djetaine

Right, but I was commenting on his original statement of giving the houses to the people so that the people would have the asset/property. At least that's the way the post made it sound.

The people as in we the people of the united states. The government would own those properties for a time until they sell on the open market to re-pay the tax payer funds used to purchase them. The houses in real shitty areas like Detroit for example could be turned into rental properties for 10-15 years until the market rebounds and they could be sold for a profit.

[PETA]

Originally Posted by e-brake

The people as in we the people of the united states. The government would own those properties for a time until they sell on the open market to re-pay the tax payer funds used to purchase them. The houses in real shitty areas like Detroit for example could be turned into rental properties for 10-15 years until the market rebounds and they could be sold for a profit.

One of the problems with that is that it offers every incentive for banks to refuse to work with distressed borrowers when they know they can foreclose and sell to the gov't.

Another problem is that it will artificially support price - these homes will go into foreclosure and get snapped up by the gov't rather than go through foreclosure and sale on the market where buyers would have been able to buy at a lower price but for the gov't stepping in.

[progress]

Sure, I'm all for buying foreclosed homes with tax dollars IF:

1. You can actually tell me what that home is worth rather than the market inflated price
2. You can actually turn around and sell the house at the price it was bought for to get my tax money back.
3. The home owners who were stupid enough to buy a $350,000 home when they make $50,000 a year are kicked out and not allowed to buy a house unless it's in their affordable price range

[black_ostrich]

my gut feeling is... this is the result of CRA, ACORN, Fannie Mae / Freddie Mac and socialism forcing banks to lend to anyone that could qualify- What else could it be????

ACORN:
http://www.marketwatch.com/news/stor...5%7D&dist=hppr
http://www.nytimes.com/2006/10/24/bu.../24fannie.html

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