Archive for October, 2009

Pres.Obama where is the help for all homeowners?

October 29, 2009

Trillions have been spent to help banks and business,isn’t it time to help all homeowners,especially with a business plan that doesn’t require taxpayer”bailout” money?

 
Change it,Challenge it,or Endorse it.”
 
This is as brief as I can make it.
So with that,should you or anyone wish more details,Please email at any time.
 
“THE EVERYBODY WINS PLAN”
Carmen Basilovecchio
This is not copy written and anyone may post or use at their own discretion.
 
TWO PROPOSALS. 
Two proposals to end the housing crisis,end foreclosures,short sales and to restore
credit to the housing market by using a BUSINESS plan that makes a taxpayer PROFIT
while performing this social good that allows everybody to win.
 
Proposal Number One:
Instead of “First Time Homebuyer Credit of up to $8,000”
Propose: Any Down Payment ,an amount up to 10% of the purchase price or $62,500
whichever is LOWER used for a primary residence will  be eligible as an income tax deduction.
This will stimulate and stabilize the housing industry with an effect that will make the taxpayers
revenue actually increase as the tax base will increase because the Fair Market Value of ALL homes
will increase thereby increasing revenue without a rate increase,also more buyers-most importantly-
MORE END USERS will enter the market.
 
Proposal Number Two
End all foreclosures,short sales and defaulting loans by using
“The Everybody Wins Plan”  LOAN MODIFICATION.
A loan modification that allows the lender and borrower
to overcome todays adverse market conditions and make the loans “credare”
(trustworthy). 
A low rate of interest with an extended payment period.
A new type of mortgage that makes the home affordable and maintainable.
A FIXED 7 year payment (84 monthly payments)
with a balloon payment consisting of a 30 year fixed rate mortgage for the balance.
NO GREAT SCIENTIFIC MIRACLE HERE!
Just a simple new mortgage that makes the homes affordable,by taking away the
 investment portion (gaining equity in the home),and allowing the asset value to grow.
A mortgage that makes the basic instinct of SHELTER the real motivating factor
for home ownership.
 
HOW THE NEW MORTGAGE WOULD WORK.
1.The home MUST be evaluated.Fair Market Value (FMV) MUST
be established.
2.New loan is set at 120% of FMV (This is not a typo…yes 120%
of FMV)Why ? So everybody wins
.Example: if non-performing loan is $330,000 
The home could have a Fair Market Value (FMV)
of $175,000.
The new mortgage becomes $210,000.NEW PAYMENT
of $787.50 PER MONTH for 84 payments.
AFFORDABLE ! AFFORDABLE !
3.Part One of new loan is 7 year portion that is 84 fixed payments of
PRINCIPLE AND INTEREST.
Principle payment per $100,000 loan is $100 per month .
Interest is based on 5 year Treasury note and 10 Year Treasury note
e.g.,the mean of the two….5yr@ 2.25 with 10 year at 3.25
would be 5.5 divided by 2 equals 2.75% INTEREST.
Interest payment would be $275 per month
THE TOTAL MONTHLY PAYMENT FOR 7 YEARS WOULD BE A
VERY AFFORDABLE……$375 per month per $100,000 loan
A $200,000 home loan would be $750 per month ,84 payments.
All that is needed is a FMV with a HUD and two payments at closing
and 8 million Americans will once again “believe” in the American Dream
and become “CREDARE” credit worthy.
4. Payment number 85,the second part of the loan IS PAYMENT IN FULL with the use os a new 30 year fixed mortgage for the balance owed.
The $100,000 loan would have a balance of $91,600.
This was at the start on a loan of 120% of FMV but 7 years in the future based on fed estimate..homes on a 10 year average increase  4.25% per year..(if you believe that;this new mortgage would be @90% loan to value).
BUT there is really three and always three possibilities of
any and all future prices.Price will be higher,lower or the same.
Two out of three make a great senerio for the”EVERYBODY WINS PLAN”.
If prices are (unbelievably) LOWER,no problem REPEAT the 7 year 30 program,”EVERYBODY WINS PLAN”
Let them stay in their homes,
Let them be able to afford it,
Let them be able to manage it.
No cost to the taxpayers.100% including interest is paid back.
THIS IS THE REAL AMERICAN DREAM.
SHELTER THAT COULD  BE A GREAT INVESTMENT.
Turn this challenge into a greater good for all.Re-establishing “CREDARE” .Faith in the American people and home values.
This is a fast and great solution to the problem and it allows for time
to fix the blame and to do what is necessary for future prevention.
We simply must get off the idea that we should only help “the good” people and leave the “reckless” ones to their own ends. Whether the foreclosed house next to me was owned by a good guy or a reckless flipper doesn’t matter.. my home value goes down either way due to the foreclosure.
 
PLEASE,
PLEASE,
Change it,
Challenge it
or
Endorse It
 
Thank You again,
 

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October 29, 2009

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