this is just an idea, simply cut out the banks,let homeowners borrow directly from the fed at 3% and tack on the 3 and 3/4 that the banks would have gotten on to the principal of the mortgage,300k mortgage would be 309k to the bank and the fed would give the homeowner a loan at 3 or 4%,problem solved,i'm sure this solution is too simple to work,criticism welcome
An easier solution to open the floodgates to LEGAL immigration. America on a per capita basis lets in half the number of immigrants as say Canada, or Australia. Change the law so that America has a points system. Those immigrants will then buy houses and live the American dream. Now before you start screaming, but there are already so many unemployed. The immigration is based on skill set and necessity. This is not an H1B solution, but a Canadian or Australian points system. Very different...
that is a great idea. Any non criminal alien who buys a 700000 dollar house for cash and does not hypthocate it for 10 years gets to be naturalized after 10 years. In the mean time they get to function as such. However you can only bring in one family member per house and that family member must have 200,000 in cash in an account at all times.
This is already over the top. This is why the US has problems. The idea of the points system is that it is a fair and unbiased mechanism to allow immigration. So maybe you have the money maybe you don't. The idea with the points system is to allow those people who will contribute to society to immigrate. Those people that have 700,000 USD to pay cash are not going to settle in the US. They will settle in Switzerland or another low tax haven... And there are not enough of those people to make a difference in the mortgage mess.
Yeah, I can see people flocking to put 200k into t-bills and 700k into tanking US real estate for 10 years. Splitting families in two will prove popular as well. How about instead of trying to create yet another generation of impoverished socialists, you let them invest in what they think will make the best return? Best of all, just sell US green cards at auction. That way you get the best price for the US taxpayer, and only the most qualified people get in - they will be richer, more educated, and more intelligent than the average US citizen, by definition. After they buy, they follow the law, invest in what they want, rather than being corralled by central-planning moron-failures into one red tape scheme after another. You can set the supply of immigration licenses to whatever level is politically acceptable to the unwashed broke-ass handout-seeking masses.
let's modify the original idea and that fed loan at prime is good for three years and then the homeowner will have to switch back to a conventional loan or sell,they came up with all kinds of ideas after the depression to get this country back on its feet,we could start implementing now to head off a depression,now the mortgage crisis is stalled and maybe things will pick up
it was suggested that the way to fix the housing crises was through immigration. I said ok - but lets make the immigrants have some assets. We already have plenty of buyers in the under 400,000 dollar range in many part of CA. Florida may still be hurting in that price range because so many of those homes were 2nd homes. Frankly I do not think we should be fixing housing we should let prices go to where they must. The high end will continue to contract and pancake down the homes below to will get back to year 2000 or so prices.
the low interest rates on first time homes is the answer-they have done it in europe-when we awere there in 2007 4% was the 30 yr loan we almost bought-we thought they were too overpriced but then again look at the location SW spain ohh lala so back to seattle---anywho i have worked for folks from england who said the rate on their first home was 3.7%-you tell me why our banks need to make so much off of us??????????????? our 30 yr fixed rate is ridiculous-pure greed and manipulation nothing more- i forgot control . so lower the rates for first timers and we will see all the inventory be bought up at least in the bigger cities like seattle ny la san fran chicago they know how to fix it banks are cherry picking-its a land grab! nothing more!