Letters to the Editor

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HOUSING: American dream can be a reality again

Letter by Ron M. MacLeod, Federal Way on Dec. 2, 2011 at 4:24 pm | 4 Comments »
December 2, 2011 4:24 pm

Problem: Foreclosures can force homeowners delinquent on their mortgage payments to become homeless; foreclosures reduce the tax base as well as funding for education, child care, police and fire services, elder care, etc.

Solution: Let lenders keep equity with no debt via a note at full value, with interest-only payments, pay taxes if homeowner can’t and add amount of taxes to the note.

Benefits: The real estate market doesn’t become flooded with foreclosed properties; lenders do not sell at a loss; the tax base is not reduced; jobs increase as new home construction increases; no vital governmental programs have to be reduced or cut; consumer buying power increases; bankruptcies would be reduced across the nation for homeowners and lenders; there would be no federal need to bail out lenders and homeowners, and the wealth equity ratio between ages 60 and ages 30 would be reduced from an all-time high of 49 times; the economy would be infused by not spending trillions overseas.

By implementation of the above solutions, the American dream can be a win-win-win situation and will be a reality again.

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