I have had it, with Self Serving folks trying to fix this mess!
Here are my solutions to fix the Real Estate Market. I know they will be painful, but they will work and work fast.
Starting August 1st, 2009
•· All loans will be rolled back to 4% interest and start over August 1st, 2009. No late fees, no equity, the balance owed is refigured at 4% and no new closing or anything. Late fees, taxes and any other past due fees are waived. A one page letter will be issued stating in simple language that the 1st payment is due September 1st and this is your new interest rate, payment and term. (30 Years) NO exceptions, no assumptions.
•· To help folks who stuck it out and made their payments as agreed, starting November 1st, 2009. People current on their current mortgage can refinance under the same guidelines until April 15th, 2010.
•· All vacant homes currently owned by financial institutions and or government entities will be sold at 50% of the balance owed. The buyer can pay cash or receive a 4% loan for 30 years through FHA regardless of the amount. Investors are authorized to purchase as many homes as they wish. All homes must be sold and closed by October 1st, 2009. If not sold they will be auctioned of by October 10th, 2009. Any past due fees, Taxes or other charges are herby waived or forgiven. Any home Auctioned cannot be resold for 5 years.
•· Loan qualifications for the vacant properties shall be the following. 1.) A 580 Beacons score or better. 2.) A 40% debt to Income Ratio for all participating in the purchase. 3.) One year on the job or 3 in the current industry. 4.) 2 years of tax returns with a variance of less than 20% in Earnings. 5.) 2% down, all closing costs rolled in. 6.) One year prepaid insurance. You have these items you own it. Each Real Estate office that accepts properties for sale under this program will have at least one certified and bonded "Approval Official" to process the loans and then they will be assigned to a certified lender under this program. By law, no lender may turn down any of the loans if they are FHA approved. No underwriting is necessary for the transactions.
•· Closings will be done in 4 days and will include Saturday and Sunday.
•· No appraisals are needed for any of the above transactions and NONE of the property is to be used as a comp for comparisons for other properties. This is a solution to an economic crisis and should not be used to devalue property that is clearly not in the same type of situation.
•· All property must be listed with a local Real Estate Agent. The institutions must deal directly with the local agent. No middle man. All commission is 6% to be divided equally between buyer and seller agents. The listing agreement to be used is a one page agreement that instructs the agent to dispose of the property either by sale or auction, within the allotted time frame. A buyer will receive a pin # to go online and view the other pages that apply to the contract. No more than 5 pages total will be allowed for the entire transaction.
More to Come, But I think this is a great start.....
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