I've been thinking lately. Maybe not always a good sign, but I've come up with some harebrained incredible ideas for solving or at least mitigating the foreclosure crisis in this country.
1. Have lenders agree to work with buyers who are behind on payments but are trying to still live in the home i.e. not flippers etc who put zero down and can just walk away. Work with them how? Cancel fees for a set period of time as they try to catch up on payments. Allow them to refinance to fixed rates with low or no closing costs. Offer interest only payments for a small period of time like 3 or 6 months and then go back to normal payments.
2. Offer subsidies/tax breaks to towns or commercial/philanthropic organizations to buy up property in low income areas, especially the hardest hit urban areas like Dorchester, some parts of JP, Haverhill, Lowell, etc., and work with residents who want to own a home but cannot afford more of a monthly payment that what their rent currently is. This would provide jobs to many - rehabbing that doesn't require a permit could be done by potential owners to reduce their monthly payment for example. Offer lease to own options as well. If towns did not have enough money to buy up these properties, civic minded individuals or organizations could improve the areas while making money at the same time, especially with tax break incentives.
3. Public plea for help. Just like with Katrina, this is a crisis that is affecting many people and causing many to become homeless. People are generous, but if they don't know how to help they won't help. Bush's HOPE NOW program is a start but as with most things is bureaucratic and not especially efficient. A well run nonprofit headed by a retired CEO or former president/governor etc. could collect donations and offers for assistance and distribute them equitably. Churches and social groups like Kiwanis/Rotary/Elks etc would surely respond if they were approached directly to help those in their own communities.
Do you have thoughts about this? Feel free to comment and tell me my ideas or worthless, great, or somewhere in between. Also, please give this some thought and maybe add a few of your own.
Comments(1)