Space is limited please request free copy of the plan via email....bestsolutionsfl@aol.com.Thanks
Problem solved: All homes become owner occupied.All housing supply will be eliminated by demand,created by those who wish to stay in their homes(85%) and by new homeowners (15% foreclosed or rented,Investor owned) because of the extremely low affordable rates.
ACTION:Solve Trillions of dollars crisis at no cost to the taxpayers,and allowing for a tax payer profit.
RESOLVED:ALL "underwater" loans and foreclosed homes to be purchased at 110% of FAIR MARKET VALUE.Loan to be marked "paid-in-full"This is a one time deal and could be done in 6 months are less.As allowed by Freddie and Fannie as part of their interest in securing mortgages and new condition for banks if they desire any federal help.
PURCHASE to be made with the use of 10 Year US Treasury Notes at 2.7%.NOTES will be given as payment in full.
Legislation is already in place for GSE agency to do this and also funding is already approved (TARP).
NEW LOAN: is a special "EVERYBODY WINS PLAN" loan
A 10 Year loan that has fixed payments (120) with payment number 121 (the magic bullet) ...... paying the balance in full.Because of the low cost of the funding(12/31/08 @ 2.08%)now @ 2.6% with the special long term payback this will be a very affordable payback.
TERMS FOR THE NEW LOAN:120 fixed, low, and affordable monthly payments that consists of........
........... (A) payment of total interest; (B)15% of principal ; (C)15% for taxes and insurance.
This is a total payment ,known as P.I.T.I.
MAGIC BULLET:Payment number 121..the new 30 year mortgage.. is given by a third party lender to the owner at a fixed prevailing rate,for the 85% balance.IF A TAXPAYER PROFIT IS DESIRED AT 5%,then the 30 year is to be 90% of the original new loan.(If 3 Trillion needed that's 150 Billion profit).
Example:$100,000 "EVERYBODY WINS LOAN"
LOAN AMOUNT $100,000 with payments to include:
A...Total 10 years interest............... $27,000
B...15% for principle reduction........ .$15,000
C..15%..TAXES and INSURANCE.....$15,000
TOTAL.......................................................$57.000
paid by 120 fixed equal payments of $475.00 each...... (wow, how affordable is a $100,000 mortgage
at a total P.I.T.I. payment of $475.00 per month???)Then the 10 year treasury bond is paid-in-full since a new 30 year fixed mortgage is acquired for the $85,000 balance.NOTE: if taxpayer profit is desired then the new 30 year loan is for $90,000.
To calculate payment for 10 year portion use a factor of 4.75 per $1,000.
Example:, if loan amount is $250,000;payments of $1187.50
($250 X 4.75 = TOTAL PITI FOR A HOME VALUE OF $250,000
at an unbelievabe low $1187.50
REPEAT: Extremely affordable.It is total payment...P.I.T.I.
You need to get the full plan because in order to solve the lenders side a lender is given a loan to replace "out of the money " portion
The One Who Saw It Coming
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He also sees government intervention as vital to channel animal spirits and innovation. And where innovation is most needed now is in real estate and for the individual homeowner.
For all the trillions in derivative trading, there were very few traders. Almost all the subprime mortgages that were bundled and turned into derivatives were sold by a handful of Wall Street institutions, working with a small number of large institutional buyers, ranging from the Bank of China to HSBC to sovereign wealth funds. And as we now know, these derivatives were black boxes whose contents were known by neither the sellers nor the buyers. It was a huge but illiquid and opaque market.
Meanwhile, the system was built on the myriad decisions of individual homeowners and lenders around the world. None of them, however, could hedge their bets the way large institutions can. Those buying a condo in Miami or Marbella had to believe that the market was going up, and had no way to protect themselves if the market went down. When it did, millions were left with homes they could not sell, even for less than they paid.
The solution, says Shiller, is to use derivatives to allow home-owners—and, by extension, lenders—to insure themselves against falling prices. In the United States alone, housing is a $20 trillion market, in there are few ways to unlock profit when the market falls. But for stocks, because of the use of derivatives and options, money can be made when markets fall, which significantly increases the potential number of buyers and sellers at any given point. And more buyers and sellers—according not just to Shiller but to most finance scholars and traders—means that markets stay liquid and functional even under pressure.
Shiller has been exploring ways to create homeowner insurance against falling prices for nearly 20 years, and most of the papers he has written on the subject are written for other academics. Even his recent "Derivates Markets for Home Prices," a working paper published last March at Yale, is more jargon-filled than most laypeople could handle. While he has been both adept at sounding his warnings about bubbles and fortunate in his timing (he published a book, "Irrational Exuberance," on a bursting stock-market bubble just as the burst arrived in March 2000, and another on the subprime meltdown just as the meltdown went global), his call for derivatives as homeowner insurance have not received nearly as much attention.
It's not as if he hasn't tried to put his money where his mouth is. With business partners he created a home-price index, the Case-Shiller Index, which in turn can be traded on the Chicago Mercantile Exchange. But that is limited mostly to gamblers and speculators who want to take bets on whether the index and underlying average home prices are going to go up or down. That is a far cry from someone buying a home in a suburb of Las Vegas or Phoenix being able to use some sort of financial instrument to hedge himself against home-price declines. As Shiller freely admits, it's a long way from where we are to where he thinks we ought to be.
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