Comments on: A Different Take on “Government Housing” http://allfinancialmatters.com/2009/07/14/a-different-take-on-government-housing/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: Tzen http://allfinancialmatters.com/2009/07/14/a-different-take-on-government-housing/comment-page-1/#comment-430450 Tzen Fri, 17 Jul 2009 12:20:20 +0000 http://allfinancialmatters.com/?p=3698#comment-430450 It will end with a revolution. It will end with a revolution.

]]> By: Stacey http://allfinancialmatters.com/2009/07/14/a-different-take-on-government-housing/comment-page-1/#comment-430335 Stacey Thu, 16 Jul 2009 04:24:09 +0000 http://allfinancialmatters.com/?p=3698#comment-430335 And who is going to track all this? Sounds like there will be a 500% increase in the need for accounting majors! And who is going to track all this? Sounds like there will be a 500% increase in the need for accounting majors!

]]> By: Foobarista http://allfinancialmatters.com/2009/07/14/a-different-take-on-government-housing/comment-page-1/#comment-430287 Foobarista Wed, 15 Jul 2009 21:32:32 +0000 http://allfinancialmatters.com/?p=3698#comment-430287 I suggested something like this awhile ago, although I think it should be region-specific and not person-specific. It should not be used to keep people in houses, but it could be used in places where the market would otherwise disappear or neighborhoods would end up filled with abandoned houses. There are places where foreclosures and REOs do sell fairly quickly and empty houses are rare (ie, Socal). There are other places where REOs sit vacant for months or years, and "block foreclosures" cause massive neighborhood degradation. This sort of area is a candidate for a sort of "in-place foreclosure" approach, where an RTC-style entity buys the house via a foreclosure auction, lets the person rent the house at some reasonable rent, and lets them buy the house back when the economy improves, assuming they pay the rent on time and aren't completely broke. If they can't/won't pay the rent, they're on the street and the house is rented to someone else who can get the same deal. I suggested something like this awhile ago, although I think it should be region-specific and not person-specific. It should not be used to keep people in houses, but it could be used in places where the market would otherwise disappear or neighborhoods would end up filled with abandoned houses. There are places where foreclosures and REOs do sell fairly quickly and empty houses are rare (ie, Socal). There are other places where REOs sit vacant for months or years, and “block foreclosures” cause massive neighborhood degradation.

This sort of area is a candidate for a sort of “in-place foreclosure” approach, where an RTC-style entity buys the house via a foreclosure auction, lets the person rent the house at some reasonable rent, and lets them buy the house back when the economy improves, assuming they pay the rent on time and aren’t completely broke. If they can’t/won’t pay the rent, they’re on the street and the house is rented to someone else who can get the same deal.

]]> By: Eden http://allfinancialmatters.com/2009/07/14/a-different-take-on-government-housing/comment-page-1/#comment-430272 Eden Wed, 15 Jul 2009 18:20:47 +0000 http://allfinancialmatters.com/?p=3698#comment-430272 "Where does it end?" pretty much sums up the whole problem. Except for canceling all government interference ASAP, this can't end well. “Where does it end?” pretty much sums up the whole problem. Except for canceling all government interference ASAP, this can’t end well.

]]> By: kitty http://allfinancialmatters.com/2009/07/14/a-different-take-on-government-housing/comment-page-1/#comment-430235 kitty Wed, 15 Jul 2009 15:44:10 +0000 http://allfinancialmatters.com/?p=3698#comment-430235 If the government does it, then the government should own the home. Then a) if the owner stops paying, the government should have option to foreclose/settle with bank. b) the money government pays should be treated as a loan c) if the price of the home (ever) goes up, all the cash cleared from the sale after the mortgage is paid should go to the government. If the government does it, then the government should own the home. Then a) if the owner stops paying, the government should have option to foreclose/settle with bank. b) the money government pays should be treated as a loan c) if the price of the home (ever) goes up, all the cash cleared from the sale after the mortgage is paid should go to the government.

]]> By: Jason Bontrager http://allfinancialmatters.com/2009/07/14/a-different-take-on-government-housing/comment-page-1/#comment-430234 Jason Bontrager Wed, 15 Jul 2009 15:12:27 +0000 http://allfinancialmatters.com/?p=3698#comment-430234 "Where does it end?" "<a href="http://en.wikipedia.org/wiki/Totalitarianism#Etymology" rel="nofollow">Everything within the State, nothing outside the State.</a>" That's where it ends. “Where does it end?”

“Everything within the State, nothing outside the State.”

That’s where it ends.

]]> By: Geoff http://allfinancialmatters.com/2009/07/14/a-different-take-on-government-housing/comment-page-1/#comment-430233 Geoff Wed, 15 Jul 2009 14:56:20 +0000 http://allfinancialmatters.com/?p=3698#comment-430233 For some people I think this is an interesting idea, like those that are losing their homes because of unemployment. These people have to live somewhere, and in some instances (like in MA), the government already is footing the bill for hotel rooms for these people and families. Maybe the government can get a better deal from banks than these hotel owners. For some people I think this is an interesting idea, like those that are losing their homes because of unemployment. These people have to live somewhere, and in some instances (like in MA), the government already is footing the bill for hotel rooms for these people and families. Maybe the government can get a better deal from banks than these hotel owners.

]]> By: Beth http://allfinancialmatters.com/2009/07/14/a-different-take-on-government-housing/comment-page-1/#comment-430222 Beth Wed, 15 Jul 2009 11:53:22 +0000 http://allfinancialmatters.com/?p=3698#comment-430222 Just how quickly will the $50 billion housing aid kitty be spent? I don't think it would take long...and then what? Oh, wait, that's when our taxes get raised again! Just how quickly will the $50 billion housing aid kitty be spent? I don’t think it would take long…and then what? Oh, wait, that’s when our taxes get raised again!

]]> By: Jonathan http://allfinancialmatters.com/2009/07/14/a-different-take-on-government-housing/comment-page-1/#comment-430171 Jonathan Wed, 15 Jul 2009 05:45:54 +0000 http://allfinancialmatters.com/?p=3698#comment-430171 So, when I try to buy a house, I will be competing with the government, which gets to use my tax money to outbid me. Wonderful. So, when I try to buy a house, I will be competing with the government, which gets to use my tax money to outbid me. Wonderful.

]]> By: sam http://allfinancialmatters.com/2009/07/14/a-different-take-on-government-housing/comment-page-1/#comment-430153 sam Wed, 15 Jul 2009 02:27:14 +0000 http://allfinancialmatters.com/?p=3698#comment-430153 Your last question is the best: Where does it end? Your last question is the best: Where does it end?

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