Some question bailout in wake of HR 3221
Inman Community brief
By Inman News, Thursday, September 25, 2008.Editor's note: The following is a reader comment on the Sept. 24 Inman News column, "Federal plan 'a disaster in the making.' "
"Why aren't we just using the legislation that was previously passed? The Housing and Economic Recovery Act (HR 3221) would allow banks to "dump" their bad mortgages by accepting short payoffs from FHA refinances. All that is missing from that legislation is giving a carrot to the mortgage holders of increased tax breaks for accepting less than 100 cents on the dollar as full satisfaction of the loans, and their ability to participate in the payment of the homeowner upon sale of the house of all or part of the 'profits.'
"This seems to me to be the most reasonable path to follow (and it should include primary residences as well as investment properties, except that the payback of profits on investment properties should be higher). This gets rid of toxic loans from the system, replacing them with realistic loans. It keeps the foreclosure rate down, without giving a full bailout to anyone. Yes, it will cost taxpayers, since there would be less tax revenues paid for a few years by banks and lenders (but, then again, how much do they pay in taxes anyway?)"
--Peter J. Pike
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Submitted by Joe Hildebrand on September 25, 2008 - 7:49pm.
Joe Hildebrand's Bail Out Plan!
Ok so this is a bit tongue in cheek and 90% serious. I am not for a single dollar going to any of these crooks. PERIOD. Regardless of the cost. If we can bail out big business who has fleeced the better part of the American public we can bail out small business owners and get them REAL AFFORDABLE HEALTH CARE!
Without further adieu, my short and sweet bail out plan (it should sound very familiar!)
1. Any company requesting or in need of bail out money must submit a FULL CREDIT APPLICATION.
2. If their credit is not good (and its not or they wouldn't be in this position) then they are subject to a 24% ANNUAL APR!
3. If their credit is beyond questionable, we can provide them with $ at a Variable Rate. After all they should be in better standing in a few years and they can SIMPLY REFINANCE THE DEBT :)
4. We can set up a national web site where the American people (the "owners of the new company") can log on to see payments being made.
5. The web site in #4 can be used by the bailees to make a payment. Of course their will be a convenience fee for said payment.
6. We can set up an 800# in the event that they do not want to pay over the phone. The 800# will be impoosible to reach a live human being. In the event they do it will go to BFE, India and to a representative who knows 0 english. The fee to pay over the phone will be more than the web.
7. The debt can be sold at any time without notice. If it is they are still responsible for making payment. If payment is not made to right company on time they will be subject to late fees and possible foreclosure/reposessions.
8. Late payments are subject to a 6% late fee.
9. Interest rate on money for bail out is subject to change until locked!
10. well you get the idea.
These are some of the very companies that created such business practices breaking the financial backs of some Americans. Now they are supposed to get free $$$$$? I DONT THINK SO. They should be forced to get a taste of their own medicine. Maybe, and just maybe, we will see a return of morals and ethics to business. We will see some decency and not just bottom line.
There is no reason they should be treated different from any other business/consumer in need of money. PERIOD.
Call your senator and tell them to go with my bail out plan! If they don't know of it, they can contact me directly!!!!
Joe Hildebrand, Realtor
RE/MAX Unlimited
303-437-1239