First, an outline of the problem: The old way of doing things with foreclosures have not changed. That’s the problem.
After a property is foreclosed, the bank lists it with (mostly) the same agents they have been working with for years. Newbies who may actually know the market are not invited…..but that’s not where I am going.
The properties are just thrown on the market no matter what shape they are in because the bank needs to get it off their books.
So, that makes the homes available to only a few buyers…investors with cash, not the ultimate home buyers. They end up paying retail after the cash investor fixes it up.
No, I am not against the investors making a profit, it’s just that there are too many homes and it makes no sense.
I know there are FHA 203k loans, but they are cumbersome, expensive and not available to all property or property types.
How about, Mr. President, making each property that is foreclosed by the banks fixed up to standards that an owner occupant can move into and finance properly.
Give income to the construction trades that are hurting and recoup the outlay when the home closes (with interest!).
What did we just accomplish? We gave people jobs, we moved property faster and for more money, we added to the number of mortgages in the system with quality property that made mortgage backed security investors happy and to top it off, we stimulated an economy with the taxpayers making money!
I know someone knows someone that that knows someone who can actually get this idea to someone at the White House to get this rocking ASAP (May 1, the day there is no tax credit would be good!).