Foreclosure sub prime mess

remedy reality and redemption.

Their has been to much talk and not enough action so here is a plan of action.

 In the 80’s Donald Trump was in over his head due to the being over leveraged  on his propertiesThe banks where threatening  to foreclose. then they realized that they where too heavily invested and if they foreclosed they would ruin their own business.So they did what is called a work out plan ie lower interest; lower payments’ basically make the loans more affordable for Donald Trump. 

This plan is more like forced mediation than  a bail out.

 

The reality is most people do not want to  lose their home they just need time.

And in real-estate  time heals all wounds.

You always hear that banks don’t want to get real-estate  back;

 but  that is not the case; and here are the two main reasons;

One most loans in foreclosure have been paid on for 2 or more years. these payments are basically only interest or “profit”

And secondly these loans have PMI insurance so the bank is covered

Either way.

The fact is that after being foreclosed on most homeowners are still paying rent and that rent will be 80-100% percent of the payment they had on the foreclosed home.

With this plan the bank gets the money they are owed; they just get it with different terms.

This is the “TRUMP PLAN”  that the government needs to implement.

This plan should consist of these main branches

• First: 90 days freeze on all foreclosures involving homestead or principal dwellings  including late fees and penalties.
• All homeowners who have had a least one 30 day late in the last  12 months are eligible.
• All banks and mortgage companies must contact  all homeowners with a 30 day late and give them 60 days to accept the plan.
• The homeowner can pick any two options:

 

• Opportunity to lower interest up to 3 points for 2 to 5 yrs
• No negative amortization during life of plan.
• Option to lower payment by up to 30 percent for 2 to 5 years
• Freeze current payments and interest for 2 to 5 yrs
• Extend the terms of the mortgage by  5 years.
• If a default (30 days late) occurs during the plan the plan can be voided with 60 days to cure.

 

Penalties and late fees generated before entering the plan can be added at the end of the loan to the principal