The billions of taxpayer dollars given or loaned to the banks have failed to stimulate the housing market as I expected. The reason it failed is because it let the very people that caused the problem to perpetuate it. For every billion dollars provided they used to 75% of the funds to; Give themselves pay raises, bonuses, use the funds for conferences in expensive 5-star resorts, buy smaller companies, refurnish offices, replace old cars with newer and more expensive ones, replace or purchase millions dollars company jets and so on. This left 25% to go to existing home owners and new home buyers that now require more scrutiny.
They have squandered their own funds and are using the billions to get it back and benefit. I have a better solution. My solution is a 2 phase plan that will benefit home owners and perspective home purchasers. It will invigorate the housing engineering industry, construction industry and real estate industry. My plan is not a give away to home owners facing foreclosure but it’s an investment with major restrictions that will help in the first phase to give those home owners a chance to keep their home to renters of homes facing foreclosure a chance to buy the home they rented, renters of apartment building facing foreclosure an chance to buy the apartment they rent and renters that have the need for 1-bedroom to 2-bedroom units a chance to buy that home for what they currently pay in rent. The housing engineering industry will respond by designing four plexes that consist of 1 and 2 bedroom units that will turn renters into home owners which spills over to property taxes for the state and counties, home improvements benefits to contractors or home improvement business. How it works is rather simple if these basic rules, qualifications and conditions are met.:
Government Investment Plan
PHASE 1
1. Qualifications Home Owner:
A: Home owner must currently be in the foreclosure process.
B: Home owner cannot be obligated to any other real estate or own and real estate even if paid for.
C: Home owner must be living in the home.
D: Home owner must be a legal resident of the USA.
2. Limits:
A: Home owners pending re-establishment payments under the Government Investment Plan monthly payment cannot exceed 30% of net pay plus more than $500.00.
(Home owners re-established mortgage payment at a reduce interest rate must not exceed 30% of net income per month plus not to exceed $500.00. If the re-established payment is 30% of net monthly income no further GIP applies. If it does, up to $500.00 per month will be covered by the GIP. If it all exceeds then the home does not apply under the GIP.
B: Acceptance of the Government Investment Plan means that the homeowner is prohibited from approval of any 2nd mortgage, equity lines of credit or any other process that would add financial liability to the property for anytime the investment funds are applied to the home purchase.
C: Home owner cannot be obligated to any Open loans such as Credit Cards, Car Payments or store accounts. Accounts that are established will be closed and precluded from reopening until the investment funds are returned, established car payments are accepted but re-loans will be restricted. Credit Reports will be annotated to prevent any further credit.
D: The GIP is a ONE TIME deal
3. Renters:
A: Must been living in the same unit for 2 years paying rent on time.
B: Building must be in the foreclosure process.
C: The buyer must be a legal resident of the USA
D: The buyer cannot be obligated to any other real estate or own and real estate even if paid for.
Limits
A: Buyers pending establishment of monthly payments cannot exceed more than 30% of net income plus up to $500.00 or $500.00 above what they currently pay in rent.
(If the buyer rent is 30% of their net, no GIP applies; if the buyer rent exceeds 30% the GIP will apply up to $500, 00 per month toward payments. The buyer will be held obligated to a monthly payment equal to their rent. If it all exceeds then the home does not apply under the GIP.)
B: Acceptance of the Government Investment Plan means that the homeowner is prohibited from approval of any 2nd mortgage, equity lines of credit or any other process that would add financial liability to the property for anytime the investment funds are applied to the home purchase.
C: Home owner cannot be obligated to any Open loans such as Credit Cards, Car Payments or store accounts. Accounts that are established will be closed and precluded from reopening until the investment funds are returned, established car payments are accepted but re-loans will be restricted. Credit Reports will be annotated to prevent any further credit.
D: The GIP is a ONE TIME deal
PHASE 2
1 Qualifications of the buyer
A: The buyer must not own any other real estate.
B: The buyer will be living in the home.
C: The buyer must be a legal resident of the USA.
2. Limits
A: The buyer’s establishment of GIP cannot be more than $500.00 of their current monthly rental payments.
Phase 1 2B, 2C and 3A also apply.
ACTIONS:
When intervention is set forth the original property owner has lost possession of the property. GIP gets a stay to the remainder of the foreclosure process.
Subsequent actions will be to establish total payoff of the amount owed to the financial institution and what the monthly payment would be under a reduced interest rate.
If the established payment is $500.00 less than their current payment and they can afford “30% of net monthly income” to pay the new rate the requirement is met.
If the established payment is equal to or $500.00 greater than their current payment and they can afford “30% of net monthly income” to pay the new rate the GIP will apply up to $500.00 per month added to each established obligated payment made.
Previous home mortgage will be paid off by the Government Investment Plan putting those funds back in the hands of that mortgage holder. They lose any future interests gained. “Bad Behavior”
The property title now becomes property to selected mortgage companies ie: Fanny Mae, Freddie Mac, HUD. Those companies agree to the interest rate with the GIP and return the cash value back to the GIP and they are rewarded by future earnings from the interest. “Good Behavior”
All GIP monthly payment invested funds and interest will be put on the backside of the home loan and is only due and payable when either 1.The home owner wants off the program, 2. Sells the home, 3. The home is re-financed. Or 4. The home is foreclosed on due to home owner’s failure to make the minimum payment due. Interest paid funds will go back into the GIP
The monies provided by the Government Investment Plan will earn a set simple interest rate to be less than the mortgage rate “1% not to exceed the rate of the mortgage”
The GIP is not a give away and is a much smaller loan than that which has been squandered to the banks. Better controls are created and actual funds are returned with interest
Phase 1 is a plan to give a rescue to legitimate home owners a chance to keep their home. The Qualifications and Limits listed will help insure they don’t fail again.
Phase 2 is a plan to turn Renters into Home Owners. The Qualifications and Limits listed will help insure they don’t fail.
Home owners, landlords that have over extended themselves to the point of losing their property will lose all investment into that foreclosed property. “Bad Behavior” Mortgage companies giving “High Risk” loans will get what is due on the home and lose future interest profits “Bad Behavior”
Those lending institutions willing to work with the government will earn the interest off the loan “Good Behavior”
As a general habit most homeowners will purchase and sell a home in 5 years, some will last 10-15 smaller amounts will hold a home for 30 years so the GIP would get most of the investment with interest in 5 years and more than half in 10-15 years. These figures only count for home owners living in the home.
Look, Renters have to rent to stay where they are, be it an apartment or a house they pay that till they can no longer do so then move, but still, they have to rent somewhere. If home owners could keep their home with a $500.00 a month helping hand, lets do it. No vacant homes. If renters can buy a home under the plan they’d have the “Ownership” pride and get the same helping hand they’d take better care of what they got.
Those people can refuse the process, can buy their way out or sell to a new buyer under the plan. No unit would be vacant.
The winner is the American people. We turn defaulting home owners into responsible home owners and renters into home owners and property tax payers
They have squandered their own funds and are using the billions to get it back and benefit. I have a better solution. My solution is a 2 phase plan that will benefit home owners and perspective home purchasers. It will invigorate the housing engineering industry, construction industry and real estate industry. My plan is not a give away to home owners facing foreclosure but it’s an investment with major restrictions that will help in the first phase to give those home owners a chance to keep their home to renters of homes facing foreclosure a chance to buy the home they rented, renters of apartment building facing foreclosure an chance to buy the apartment they rent and renters that have the need for 1-bedroom to 2-bedroom units a chance to buy that home for what they currently pay in rent. The housing engineering industry will respond by designing four plexes that consist of 1 and 2 bedroom units that will turn renters into home owners which spills over to property taxes for the state and counties, home improvements benefits to contractors or home improvement business. How it works is rather simple if these basic rules, qualifications and conditions are met.:
Government Investment Plan
PHASE 1
1. Qualifications Home Owner:
A: Home owner must currently be in the foreclosure process.
B: Home owner cannot be obligated to any other real estate or own and real estate even if paid for.
C: Home owner must be living in the home.
D: Home owner must be a legal resident of the USA.
2. Limits:
A: Home owners pending re-establishment payments under the Government Investment Plan monthly payment cannot exceed 30% of net pay plus more than $500.00.
(Home owners re-established mortgage payment at a reduce interest rate must not exceed 30% of net income per month plus not to exceed $500.00. If the re-established payment is 30% of net monthly income no further GIP applies. If it does, up to $500.00 per month will be covered by the GIP. If it all exceeds then the home does not apply under the GIP.
B: Acceptance of the Government Investment Plan means that the homeowner is prohibited from approval of any 2nd mortgage, equity lines of credit or any other process that would add financial liability to the property for anytime the investment funds are applied to the home purchase.
C: Home owner cannot be obligated to any Open loans such as Credit Cards, Car Payments or store accounts. Accounts that are established will be closed and precluded from reopening until the investment funds are returned, established car payments are accepted but re-loans will be restricted. Credit Reports will be annotated to prevent any further credit.
D: The GIP is a ONE TIME deal
3. Renters:
A: Must been living in the same unit for 2 years paying rent on time.
B: Building must be in the foreclosure process.
C: The buyer must be a legal resident of the USA
D: The buyer cannot be obligated to any other real estate or own and real estate even if paid for.
Limits
A: Buyers pending establishment of monthly payments cannot exceed more than 30% of net income plus up to $500.00 or $500.00 above what they currently pay in rent.
(If the buyer rent is 30% of their net, no GIP applies; if the buyer rent exceeds 30% the GIP will apply up to $500, 00 per month toward payments. The buyer will be held obligated to a monthly payment equal to their rent. If it all exceeds then the home does not apply under the GIP.)
B: Acceptance of the Government Investment Plan means that the homeowner is prohibited from approval of any 2nd mortgage, equity lines of credit or any other process that would add financial liability to the property for anytime the investment funds are applied to the home purchase.
C: Home owner cannot be obligated to any Open loans such as Credit Cards, Car Payments or store accounts. Accounts that are established will be closed and precluded from reopening until the investment funds are returned, established car payments are accepted but re-loans will be restricted. Credit Reports will be annotated to prevent any further credit.
D: The GIP is a ONE TIME deal
PHASE 2
1 Qualifications of the buyer
A: The buyer must not own any other real estate.
B: The buyer will be living in the home.
C: The buyer must be a legal resident of the USA.
2. Limits
A: The buyer’s establishment of GIP cannot be more than $500.00 of their current monthly rental payments.
Phase 1 2B, 2C and 3A also apply.
ACTIONS:
When intervention is set forth the original property owner has lost possession of the property. GIP gets a stay to the remainder of the foreclosure process.
Subsequent actions will be to establish total payoff of the amount owed to the financial institution and what the monthly payment would be under a reduced interest rate.
If the established payment is $500.00 less than their current payment and they can afford “30% of net monthly income” to pay the new rate the requirement is met.
If the established payment is equal to or $500.00 greater than their current payment and they can afford “30% of net monthly income” to pay the new rate the GIP will apply up to $500.00 per month added to each established obligated payment made.
Previous home mortgage will be paid off by the Government Investment Plan putting those funds back in the hands of that mortgage holder. They lose any future interests gained. “Bad Behavior”
The property title now becomes property to selected mortgage companies ie: Fanny Mae, Freddie Mac, HUD. Those companies agree to the interest rate with the GIP and return the cash value back to the GIP and they are rewarded by future earnings from the interest. “Good Behavior”
All GIP monthly payment invested funds and interest will be put on the backside of the home loan and is only due and payable when either 1.The home owner wants off the program, 2. Sells the home, 3. The home is re-financed. Or 4. The home is foreclosed on due to home owner’s failure to make the minimum payment due. Interest paid funds will go back into the GIP
The monies provided by the Government Investment Plan will earn a set simple interest rate to be less than the mortgage rate “1% not to exceed the rate of the mortgage”
The GIP is not a give away and is a much smaller loan than that which has been squandered to the banks. Better controls are created and actual funds are returned with interest
Phase 1 is a plan to give a rescue to legitimate home owners a chance to keep their home. The Qualifications and Limits listed will help insure they don’t fail again.
Phase 2 is a plan to turn Renters into Home Owners. The Qualifications and Limits listed will help insure they don’t fail.
Home owners, landlords that have over extended themselves to the point of losing their property will lose all investment into that foreclosed property. “Bad Behavior” Mortgage companies giving “High Risk” loans will get what is due on the home and lose future interest profits “Bad Behavior”
Those lending institutions willing to work with the government will earn the interest off the loan “Good Behavior”
As a general habit most homeowners will purchase and sell a home in 5 years, some will last 10-15 smaller amounts will hold a home for 30 years so the GIP would get most of the investment with interest in 5 years and more than half in 10-15 years. These figures only count for home owners living in the home.
Look, Renters have to rent to stay where they are, be it an apartment or a house they pay that till they can no longer do so then move, but still, they have to rent somewhere. If home owners could keep their home with a $500.00 a month helping hand, lets do it. No vacant homes. If renters can buy a home under the plan they’d have the “Ownership” pride and get the same helping hand they’d take better care of what they got.
Those people can refuse the process, can buy their way out or sell to a new buyer under the plan. No unit would be vacant.
The winner is the American people. We turn defaulting home owners into responsible home owners and renters into home owners and property tax payers
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