Is my solution too simple?
If owners have a reasonable financial hardship (not even as severe as required for a short sale or loan mod), banks should refinance ALL homes where owners are making their payments, without having to qualify or get an appraisal. Banks would lend at what the money is worth today!
Owner would have to refi with the same bank/investor as they are currently with. No cash out and it does not matter what the home is worth today.
This would accomplish two things.
Banks would make loans at todays lower rates so fewer people would loose their homes to foreclosure or short sale (and the banks and investors loose less money).
ALL owners would have more money at the end of the month. They would spend it just like they would if they got a tax reduction, thereby stimulating the economy.
Almost everybody wins. If you like this solution, call or write your Representative and tell them.
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