I have a thought and am interested in what the greater impact would be – so if you’re an economist type person get back to me please…
The banks are failing. People are facing a financial crisis unseen since the Great Depression. Our government is funding a recovery plan for banking organizations with the hope the effect will trickle down to the mainstream citizens. How about this:
The average American has about $9,200 in credit card debt. The drop in market prices has led to people paying more than half their income to cover their mortgage on homes that have been seriously devalued.
With the governmental subsidies, and keeping in mind the high rate of forclosures and debt default, the bank can afford to cut some slack in order to allow the average citizen to get a firm footing in our volatile economy and alleviate fears of financial disaster.
First – for homeowners, those who are the midst of a bankruptcy they should immediately be allowed to reduce the value of their mortgage which was intended to be secure and is held by any banking institution receiving governmental aid or intervention to the actual value of the property.
Second – any homeowner who has a mortgage held by any banking institution benefiting from governmental aid or intervention should be able, upon their petition to the lender, have their mortgage adjusted to reflect the value of their property, and it should be open to readjustment should the property value increase over the next 5 years, not to exceed the amount of the original mortgage.
Third – any banking institution benefiting from governmental aid or intervention should immediately reduce any unsecured credit account according to their market share proportion for the first $9,200 of credit held by any individual customer.
No comments:
Post a Comment