One solution to consider would be to give struggling/foreclosed, but otherwise solvent homeowners a new mortgage with lower fixed rate, a longer term and a ballon. If you redo for 40 yr fixed at 5%, with 1/3rd principal balllon, your current payment drops substantially. Certainly, at some point before 40 years, they'd be market conditions favorable enough to sell and pay the ballon. Also, the % rate on the ballon could be set artificially low via federal subsidy.
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One solution to consider would be to give struggling/foreclosed, but otherwise solvent homeowners a new mortgage with lower fixed rate, a longer term and a ballon. If you redo for 40 yr fixed at 5%, with 1/3rd principal balllon, your current payment drops substantially. Certainly, at some point before 40 years, they'd be market conditions favorable enough to sell and pay the ballon. Also, the % rate on the ballon could be set artificially low via federal subsidy.
Oct 23 02:05 am
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