Saturday, September 24, 2011
How to Create Jobs and Revitalize the U.S. and World Economies - The Big Plan
By Nicholas Contompasis
My contention for the past four years with the Federal Reserve has been for them to lift the $11 trillion mortgage burden from the American homeowner by adding it to their balance sheet in one swift move. This would keep everyone in their homes, create an economy boom never seen in this country and the world. This is not about hurting the ones that did everything right. It's now about saving our country!
With that said, this is how it would work.
1. The Federal Reserve would agree to purchase all owner occupied residential mortgages from commercial banks in the United States.
2. Before that occurs the bank that holds the note must rewrite the loan with the approval of the owner to a 100 year mortgage with a slightly above zero interest rate. This new rewritten mortgage would be due in full in 100 years or unless the home is sold, when at that time 1% plus accrued interest per year would be due at settlement. Example: Home is owned three years - when sold 3% plus the new interest rate will be due. The new owner would have the obligation to make sure that the remaining 97% owed is paid in full or if sold again would pay off the 1% per year plus a the fixed interest rate on that portion of the debt.
One key point is that the new rewritten note would be owed not by the current homeowner but by the property itself, relieving the current homeowner of the burden of monthly mortgage payments and overall debt.
3. The Federal reserve will be dealing only with the property not the current occupant.
In addition banks after this transaction takes place, occupants of the home will be able to borrow up 50% of the current market value that would be owed by the occupant not the property.
4. This new mortgage would be viewed as a second position loan.
This is a brief explanation of how we can revitalize our housing market and the U.S. economy without destroying more wealth in America.
For more information about this plan you may contact the author Nicholas Contompasis at 925-930-9002 by leaving your comments and contact number.