There Are 5 Responses So Far. »

1. 

   Comment by Marc Brinitzer on 19 April 2007:

   Blogged this topic myself yesterday.

   A friend sits on the board of Freddie Mac. In Q2, look for a 50 year interest only that converts after 10 years to a 40 year fully amortizing loan. Pretty gentle in terms of payment adjustments. Now if we can get them to waive the appraisal for rate and term refi’s, maybe we can help some of those under water to keep their homes.
2. 

   Comment by Fernando on 19 April 2007:

   Do you know of any lenders that are doing this
   “homestay” program yet? Or is it in the works still? would like to know more about it.
3. 

   Comment by Tom on 19 April 2007:

   Fernando,

   I think it is still in the planning stages.
4. 

   Comment by lance pickens on 12 November 2007:

   i am intersseted in the homestay program.
5. 

   Comment by John Tilton on 23 February 2009:

   Rental an alternative to Foreclosure

   Hopefully, you can find time to review a supplement to the solution proposed by President Obama for the foreclosure problem. This supplement offers a solution for those homeowners who are in default and do not qualify for President Obama’s plan.

   We are sending this to those who are in a position to discuss and craft a true and lasting solution, that is not at the expense of the American taxpayer.

   Convert Homeowners to Renters

   1. Create a rental agreement between the homeowner, who is in default, and the mortgage holder.
   2. This keeps the house occupied during the slow housing market and the mortgage holder still receives an income from the property.
   3. Keeping the house occupied also solves the problem caused by vacant houses, a reduction in the value of homes in the surrounding community.
   4. The mortgage holder retains 100% ownership of the home and sells it when it’s to their advantage.

   Federal Money and Implementation

   1. If additional money is required to make this a workable solution, federal money could be provided.
   2. If federal money is involved, the government should be reimbursed when the home is sold.
   3. Reimbursement should always be a requirement when giving taxpayers money to the private sector.
   4. Since mortgage holders are not in the rental business, existing rental management companies could expand and new ones could be created.
   5. This results more jobs, even in other areas, helping to improve the current employment crises.

   Summary

   1. The administration’s current plan, to rewrite the mortgage and add federal money to slightly improve a bad situation, is still questionable.
   2. Most of these people wouldn’t have qualified for a mortgage in more conservative times.
   3. Probably, in a few years, many will be in default again. This is not a good long term plan.
   4. The American dream of owning your own home is only realistic if you can afford the added costs of home ownership.
   5. There is no need to bailout the mortgage holders. There should be no quick fix for them.
   6. Let them solve the problems they created by renting out the homes they own.
   7. No one has been too impressed with the recent $700B bank bailout plan and the $787B stimulus plan.
   8. The reason for this lack of confidence is that there wasn’t a believable plan in either case.

   Please give our plan some consideration. It may not be perfect, but it could be the starting point to create a believable plan by crafted those more skilled in these matters.

   We are not looking for credit, but we are hoping someone will consider our idea.
   February 20, 2009

   John Tilton Jim Kish
   Oyster Bay, NY Las Vegas, NV

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