Florida Home Buyers and Investors Blog

Here are my solutions.  Many of you may think I'm down right nuts, but here goes.

1. Foreclose on homes that the owners are unemployed and cannot afford to pay.  I hear about homeowners complaining about the banks not willing to work with them on a workout plan.  If you cannot pay, there is no plan to work out.

2. Foreclose on homes where the people fraudulently obtained their mortgage and make the people liable for the loss.

3. Foreclose on Investor properties they walked away from, or did a Short-Sale the property.  No bailouts.  Investments can go either way, nobody ever complains when investors make money.  Now it's time to pay up on the loss.

4. STOP Short-Selling.  It is not working.  Banks are swamped and have no legitimate protocol on how to effectively handle these transactions.

5. HELP Homeowners with reduced income or close to performing, but need a little adjustment to make the loan more affordable for a short period of time.  These people should have their mortgage adjusted to a longer term, say 40-50 years.  Even offer Interest Only for 10 years.  No reduction in note value.

6. Profit Sharing.  Banks should be willing to reduce the value of the home to its current value, if the current homeowner (Homestead property) can afford the new loan with full documentation.  As the FED program was presented, the owner has to share the profits with the FED or Lender. Whoever took the loss.  The owner should have to share up to 50% of the profits. (Many homeowners hate this deal)

Just because the value of the home goes down, does not absolve you of your obligation.  The owner made a contractual obligation and should be held responsible.

I am not discussing the banking institutions, or insurer bailouts, and will leave that discussion for a rainy day.

I speak with people all day and they all tell me that their credit is trash, and believe the FED will fix that too.  Heck, if the majority of society has bad credit, then that becomes the new "baseline" .