What if people who lose their homes to foreclosure be allowed a different option....
Their homes go through a foreclosure resolution auction. The homes foreclosed upon are auctioned to buyers who will allow those who lost their homes to stay in them paying a fixed rate mortgage, no more than 10%, that is set at the auction purchase price plus 10%. The buyer holds the property and mortgage in the same way a bank would, and the person foreclosed upon stays in their home.
The government will then not tax any capital gains or profits the mortgage lender/foreclosed property buyer makes on that property for 10 years.
So, if someone has a home worth $120,000, that goes into foreclosure and sells for $60,000. The buyer at auction sets the "selling" price at $66,000 plus all paperwork costs, say the total is then $70,000. The original owner then has a $70,000 brand new mortgage that is fixed set at 10% maximum interest rate. They then can pay the buyer of their foreclosed home until they can rebuild their credit and possibly get a better rate and traditional loan. The foreclosure would be removed from their credit after 2 years of faithful payments to their new "lender" so they could recover.
The home would also be eligible for energy efficiency credits, where, if need is demonstrated, new windows and other related improvement purchases can be offset by tax credits and grants.
This would be a benefit to investors who purchase distressed properties because they have a ready tenant and sale and would not have to do anything but paperwork and make a purchase. They make a profit by the infusion of their money into the economy, and the increased stress upon society and related costs are offset more than the revenue lost by the tax relief given to those willing to invest.
What do you think?
Skotstar@yahoo.com
The Profit of Compassion
Sunday, October 26, 2008
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About Me
- savestationfive
- From Union Beach, NJ, Was an activist young, promoted a benefit concert at 15. Was a Hugh O'Brian Youth Leader. At 17 my dad died, it messed me up. Left HS & started college early, moved to Eatontown, took summer & fall & traveled. Joined the Eatontown Traffic Advisory Council & Historic Committee, redesigned a circle & designs were adopted by NJDOT with little change. Even freelanced on a few papers. Dual major was Media/Oceanography. Being young, stupid, took vengence upon someone who wronged me & paid for it & came out of it with a new direction. Before my dad died he asked me what the most valuable thing I owned was. I was dumbfounded. He said my name. He said, "You can't buy a good one and you can't sell a bad one". To this day that guides me. I restarted my life & continued in state & community colleges all over until I got my AS & AA. I traveled to Mystic, Woods Hole, Willaimsburg, Jekyll, then here where I met my wife, had a son, & work for myself painting. I believe if you know something's wrong & do nothing, you're as guilty as if you created the wrong yourself. I fight for a better world for him, & all kids. I'm involved, because I'm evolved.