Why can’t the goverment and mortgage free homeowners create a profit sharing entity to by toxic loans?
The government’s guarantee paired with the value from the homes could make AAA rated bonds. The rates and terms to troubled buyers could be lowered to stop foreclosures, with enough profit left to cover costs and pay the free and clear partners two percent on their equity.
The program would be voulentary. If you put up your home as collateral you would be paid about $ 100/month for every $ 100,000 in equity. Your home would not be at risk, it would just back up money printed by the government.