Can this plan “Save our economy”?

Real Estate Broker/Owner with Respect Realty LLC 200311024

Photo courtesy of WoodsyCan our economy be saved by a mortgage holiday? This is the plan devised by two Portland, Oregon, businessmen. A local jewelry store and a high end hotel owner, together, came up with a plan that they say will stop foreclosures, stimulate the economy, and get this country back on track.

Their plan is actually ok, but I do see a lot of jobs being lost by it. It would eliminate the need for collectors, and short sale and foreclosure departments for the next year. Their idea would be to have a one year mortgage holiday for all mortgages in the United States. Now, this isn't mandatory and if you don't want to participate, you don't have to. But the idea is the payments would be added to the end of the loan and gives people one year to pay off other bills or use on other items needed.

This would put a lot of money in to the economy. But my thought was how was this going to help renters that are in the properties of the owner that isn't paying their mortgage? They even came up with a plan for that. The landlord would have to renegotiate with the tenant and offer the tenant a 25-50% rental discount for that year, depending on what the mortgage payment was for the year.

Now, this doesn't only apply to home owners, they are also planning to include businesses in this plan. How this would work, is if you own a fourplex business or an office building that has mortgage payments, those payments would also not be paid for the year.

They feel this will help restaurants that are buying a building and give them more money to put in to the actual business. This will let them hire more people, putting more money in to the economy. They feel at the end of the year the economy that we would be back in a position to curb inflation and foreclosures.

Check out the whole plan at their website



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Mark Phillips
RE/MAX Hometown - Magnolia, TX

I feel this would only prolong the recession.  The world wide problem came from house.  The problem can not be fixed without the bottom in housing.  All of the plans can not get us to the bottom as fast as free enterprise can.  By allowing people to stop paying what they agreed to is not what this county was founded on.  Even in tough times we should remember who we are.  I come from the 8th worst hit county in the nation and one county over from the worst hit.  I have seen subdivisions that 2 out of every 3 houses have been foreclosed on.  The people that still live in those areas have seen theirvalues drop by more than 65% ($350,000.00).  With all of the plans out there to help distressed homeowners, who is going to help the people that have paid there bills in full on time.  These are not the people that caused the problem.  I am not saying that we as a nation shouldn't help. Lets find a solution that is fair, bipartisan and realistic.        

Jan 27, 2009 07:13 PM #1
Joanne O'Donnell
Chic Home Interiors - Oakland, CA

That is really out-of-the box thinking!  I'd have to think though that it is not unlike all those credit cards that have deffered payment for the first year - just gets people spending money they shouldn't...

Jan 27, 2009 07:54 PM #2
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

I don't think there is no quick fix to it, period. I do think we need to help homeowners remain homeowners. How? Im not sure.

Jan 27, 2009 09:19 PM #3
Randall Sandin
Carolina One Real Estate - Charleston, SC
843-209-9667 - Search for Charleston SC Real Estate

this just moves the problems further down the road - I doubt people will take the money that would have been used for mortgages and pay down debt or save - most will buy new tvs and other stuff which would be great for the economy but then we will be in a deeper mess when people have to start paying their payments again

Jan 27, 2009 09:40 PM #4
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

Well if nothing else it does show that there are people out there trying to figure out how to solve the economic problems we are facing. 

Jan 27, 2009 09:42 PM #5
Martin Dorgan
Prudential Indiana Realty - Columbus, IN

It wouldn't work in my opinion for the same reasons other have stated, it just delays the inevitable.

The problem is Politicians want a cut for their own State, or "Pork" added into any bill. Look at the crap they are trying to add in? Example - New Lawn for Washington"  How does that benefit the Nation, it doesn't!  It only makes what they look at look pretty.

 They govern like "Sheep", Not like Leaders!  To help the Nation, they the Politicians, We the public and you, as an individual,  have to think "Out of the Box!, in the realm of something like National Help Example - The Infrastructure.  Something that will benefit the whole Nation.

My Suggestion!  Revamp and upgrade the aging Electrical system across the Nation in all States. That would benefit everyone.  Bring it into the 21 Century!

At the same time, take on a monumental plan to install enough Wind Turbines throughout the country to power the existing homes and businesses, currently in the USA.  By doing just that project alone, it would free up Millions! and put money back in every ones pockets, by lowering their expenses, which in turn gives them more money for their mortgage, or their debt, or their other expenses, or even for vacations, or their gas tanks.  I admit its a Huge Project, but it is viable, it is Needed!  But it would create jobs on a National Level.

Case in point, I think its Belgium or the Netherlands that gets all the wind power it needs to run the whole country from its wind turbines.

We all took Real Estate courses, and learned the Power of Eminent Domain!   In other words the Government Has the Power!   The point is rarely is their a general consensus of approval for anything.  So the Politicians should get together and finally do something beneficial for everyone! 


Jan 27, 2009 10:27 PM #6
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

There is no easy solution. .but I think bankruptcy court interventions is the only thing that will stop the foreclosure tsunami.  in a way.. is forcing the banks to do a short slae to the same borrowers because they have to pay to live someowhere anyway.

Jan 27, 2009 10:42 PM #7
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

I would suspend all FICA payments at least for this year.  That alone in my opinion would be immediate and felt nationwide.  Our politicians unfortunately don't want to give up any power.  Controlling money is power.

Jan 28, 2009 06:26 AM #8
Jeff R. Geoghan
Coldwell Banker Residential Brokerage - Lancaster, PA
REALTOR, Marketing Manager

It's really an academic discussion at this point - our fearless leadership has pulled the trigger on their own brand of "stimulus" this very evening, over the objections of a (finally) united opposition and 11 of their own party.  We're going for the ride, like it or not...

Jan 28, 2009 01:05 PM #9
Leslie Stewart
Oregon Licensed Broker with Berkshire Hathaway HomeServices Real Estate Professionals - Stayton, OR
Realtor, ABR, CRS, Oregon Licensed Broker

What a concept.  I agree with Randall, most people will throw the money away on frivolous things and I cant see how that will help the housing market.  People need jobs to make a living; first things first.

Jan 28, 2009 04:37 PM #10
Rebecca Levinson, Real Estate Marketing and Online Advertising Consultant
Real Skillz-Clear Marketing for Your Real Estate Vision - Lake Geneva, WI

Hmm...that is interesting Todd.  I appreciate your bringing it the attention of blog readers.  I am intrigued from a crush the box mentality standpoint, but I do believe helping people earn a living is key.  It is not just homeowners in trouble here.

Jan 30, 2009 04:03 AM #11
Jim Beatty
Key Realty - Toledo, OH

I'm seeing some encouraging signs lately!  Many of which elicit opinions both positive and negative, but I think the fact remains that we have to do SOMEthing, even if it's wrong! (old expression).  I still keep in touch with friends in the homebuilding industry who have seen increased traffic at their model homes this weekend and each of the two past weekends.

Of course the money being pumped into the banking system, banks offering workouts and re-working loans, Chrysler announces that they will be a viable business by spring (great for our city since the Jeep Plant is a MAJOR employer in our area) and now the "bad bank" idea to help fix the banking system's collective balance sheets!

I'm not fond of the name "bad bank" to take the toxic mortgages over, and am still waiting to read details of how it will work, but I'm remembering the old RTC of the last housing crisis served a similar function and really helped turn the market and the economy around!  (of course the discussions surrounding the formation of the RTC elicited both positive and negative opinions, too).

Over all, I think we're getting back on the right track and I belive the worst is behind us.

Feb 01, 2009 09:21 AM #12
Tom Priester
Paradise Sharks - Jupiter, FL
Paradise Sharks

Todd, always enjoy your statistics and the beautiful presentation. Thank you for sharing and hope all is well up in Beaverton.

Jul 08, 2010 10:23 PM #13
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