Why can’t the goverment and mortgage free homeowners create a profit sharing entity to by toxic loans?

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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.

4 Comments
  1. Reply
    E=MC2
    February 19, 2011 at 4:03 pm

    Those who own those mortgages and those who defaulted on their loans should be a allowed to fail.

  2. Reply
    Angela Q
    February 19, 2011 at 4:41 pm

    I’m not following you here. You want to take money from homeowners who don’t have mortgages? Like, a huge tax? A lot of people who own their homes free and clear are retired and living on a fixed income. And if they’re unemployed, what will you do to them, take their homes away? ∠°)

  3. Reply
    DAR
    February 19, 2011 at 5:02 pm

    Oh, they want to. And then they want US taxpayers to have to buy the toxic entity, take all the bad debt and leave those who took the profits to walk off scot free.

  4. Reply
    Thomas Jefferson
    February 19, 2011 at 5:41 pm

    Because then the govt would not be able to bail out the defaulted loans-thus making govt the new owner and therefore not be able to complete the socialist agenda.
    BTW-good plan-you have a great mind for finance, but try not to use too much logic because that doesn’t apply anymore.

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