The National Association of Realtors had a contest this year about "Game Changing Ideas for the Real Estate Industry". Let's use the collective knowledge of Active Rain to think about the way to effectively use our industry to help get us out of this financial mess our country is in!
For example, I was just thinking of Fannie Mae's new Deed For Lease program in people living in a home can lease it back for 12 months at fair market rents if they meet certain criteria and their housing ratio is at or below 31%.
https://www.efanniemae.com/sf/servicing/d4l/
I think that program has a lot of merit; however what about taking it a step or two further?
- If it was my property, I would consider doing a lease purchase on the property, not just a lease. That helps the tenant buy into the mindset of homeownership and they are responsible for upkeep and maintenance.
- What about the a "Shared Equity Loan" after the buyer proves themselves after 12 months? In that capacity, the bank that agrees to do the loan could have a deed restriction that uses their end of the profit to pay down additional debt to their bank (i.e. non secured loans, credit card loans, car loans, etc.).
Maybe the banks don't want to get rid of the other higher interest loans, so what about the US Treasury doing this with any future profits on their share going to pay off our national debt?
What about using the amount of the Tax Credits to equal the Treasury's shared equity portion and when the home is sold, that tax credit is paid back plus what ever the net profit percentage of the home is upon sale (less improvements, sales costs, etc.)
We have several Shared Equity loan programs here in Boise, Idaho and these models could be mirrored in other parts of the country.
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Jim, banks have traditionally not wanted to sell a foreclosure to any family members, but as more foreclosures come on the market, expect them to change the rules. To sell back to the people who were foreclosed...that's an interesting concept.