Is this a good solution to the Housing Crisis?

The problem right now is that if you show positive income to your bank they have no reason to lower your payments since that is how they make money and want to squeeze every penny you make towards that payment, and if you do not show enough to pay the bill the Bank prefers to right up a loss and ask the government for their money back.





My solution, which I hope March 4th the administrations will look like, would be this:


-There is a fixed interest rate between 4.5 to 6% that the Banks MUST modify at. You get the lower end or higher end based on credit. Banks are still profitable at 5% and if they are not it is because the FED is trying to make too much money off its money monopoly.


-Like in many Western European countries, your income needs to be 3 times your new mortgage payment to get the modification.


-As a borrower you are not absolved of any debt, it goes to the back end of the loan and/or should you ask the lender to re-appraise your home at current value to qualify for the above rules, you release any right to positive equity gain from that moment forward to the parties absorbing the loss.





That is it. So if you have a 500,000 loan on a house worth 300,000, at 5% you would get payments of roughly 2K a month for which you need to show you make 6K a month, should you want the property re-evaluated at the market value, your loan payments will drop to $1250 for which your income needs to be roughly 4K a month, but you lose all future equity in your home.





If this is still too expensive you cannot afford to be in it any longer. The deal can only be done once and if something happens in the future where you lose your job, your only option is the current repayment type plans.





What do you guys think about it, and what is so hard in implementing this?|||people will pay 3 TIMES what a house is worth when the payments are done..





The skyrocketing over-inflated house prices leave people in a


HOLE.... no buyers.........the market will bottom out as more people lose jobs to china...and more houses go into foreclosure..





offfering people new CLEAN CREDIT is the best....


than subsiding house payments for unemployed and


over priced home owners....





refinancing zillions of homes for home owners...


and giving unemployed people that same credit...options


with a new job........





BUT IF YOU LOST YOUR JOB should you be BUYING A NEW CAR OR HOME...not





unitl people WAKE UP and stop the DRAIN ON JOBS from china





the BOTTOM is far deeper than now





fact