A solution from the private sector

Real Estate Broker/Owner with Barry Bridges Weichert Realtors Bridges & Co.

I went to a meeting today and heard an excellent explanation of how we got to where we are in this financial mess we are in. The explanation started in the 60s and ended with today's mess. It was excellent. The important message was that the blame didn't lie with one party or group of people. It was everyones fault. That  is the truth!!

Then he offered a solution that I thought was great. Instead of just throwing money at the lenders and hoping for the best try this. Take the people who are having a hard time paying their mortgages and give them a gov't loan. It works like this. Take a figure, lets pick $80,000 and give that to the homeowner to pay down his loan amount at an interest rate of 1% and treat it as a second. Re amortize the first at the reduced  loan balance. The homeowner gets lower payments, the "bank" gets the cash infusion and the gov't makes 1%.

NO free handouts  No gambling on maybe we get some of it back some day.

Comments (4)

Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

I don't know, Barry. That just sounds too logical. And whoever heard of governments making money? LOL

Oct 24, 2008 06:11 AM
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

Lots of the people who got houses didn't really care about taking care of them or making their payments.  I doubt they want to be helped.  And if they had bad credit then (which most did) they stilll have it now.  But who knows, it might work.

Oct 27, 2008 12:11 PM
Ann Hayden 636-399-7544
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Des Peres, MO


Giving money to the banks is like asking the fox to hold on to a couple of chickens...without eating them.


Aug 08, 2009 01:02 AM
Barry Bridges
Barry Bridges Weichert Realtors Bridges & Co. - Smith Mountain Lake, VA
Lake professional

This is not giving it to the banks it is giving it to the people who need it to pay down the debt to where they can continue to pay.

You have a point but we have to gamble. If these people don't live in these homes who will? There is more housing in this country than there are people to live in it.

Aug 08, 2009 04:45 AM