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Is this the way to go?
Hillary Clinton says freeze rates and payments for 90 days while arrangements are worked out.
I have been having a discussion with a fellow mortgage broker and schoolmate and this is what we propose -
The aim being to keep homeowners having trouble meeting their payments in their homes. Allowing for a period wherein which "they can get back on track".
Allow for a faster return to buoyancy in the residential housing markets and return of confidence to investors, others who trade in mortgage backed securities and residential real estate.
Aid slowing of flood of foreclosured homes entering the market...stabilize selling prices...encourage uptick of new buyers...prevent/stave off developers and homebuilders exodus and or contraction...slowing employment lay-offs in the industry.
a) Freeze rates and payments - for a longer period - say 6 months or longer (negotiate term) add the missed payments to the principal.
b) During time of freeze - Lenders and their clients/customers workout terms that would give, hopefully many borrowers a life-line to keeping their homes.
i) Lower the interest rates charged on these loans by 1% or 2%...and negotiate *loan products acceptable to the parties...
ii) Extend the amortization term - to say, 50 years...
iii) The homeowners must keep current - taxes and insurances.
*loan products - say a 5/25 loan i.e. 5 years at fixed rate with an adjustment of rate at the end of the 5th year may be best for a particular borrower while for example, a 30year fixed or some other product would be a better option for another...etc., etc.
Are we on the right track? Isn't the aim keeping the players all afloat - containing damage to the economy and swift recovery of the markets?
What are the implications for any such contrived solutions?
Hillary Clinton says freeze rates and payments for 90 days while arrangements are worked out.
I have been having a discussion with a fellow mortgage broker and schoolmate and this is what we propose -
The aim being to keep homeowners having trouble meeting their payments in their homes. Allowing for a period wherein which "they can get back on track".
Allow for a faster return to buoyancy in the residential housing markets and return of confidence to investors, others who trade in mortgage backed securities and residential real estate.
Aid slowing of flood of foreclosured homes entering the market...stabilize selling prices...encourage uptick of new buyers...prevent/stave off developers and homebuilders exodus and or contraction...slowing employment lay-offs in the industry.
a) Freeze rates and payments - for a longer period - say 6 months or longer (negotiate term) add the missed payments to the principal.
b) During time of freeze - Lenders and their clients/customers workout terms that would give, hopefully many borrowers a life-line to keeping their homes.
i) Lower the interest rates charged on these loans by 1% or 2%...and negotiate *loan products acceptable to the parties...
ii) Extend the amortization term - to say, 50 years...
iii) The homeowners must keep current - taxes and insurances.
*loan products - say a 5/25 loan i.e. 5 years at fixed rate with an adjustment of rate at the end of the 5th year may be best for a particular borrower while for example, a 30year fixed or some other product would be a better option for another...etc., etc.
Are we on the right track? Isn't the aim keeping the players all afloat - containing damage to the economy and swift recovery of the markets?
What are the implications for any such contrived solutions?
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