As the foreclosure crisis has deepened, individuals and families have been thrust into undesirable living situations of poor quality of life. Unmanageable mortgages due largely to prior market speculation have displaced many and have families scrambling to make ends meet. The real estate market has demonstrably failed its patrons. My plan has three components which are: 1) an option to restructure mortgages for a longer period of time in order to relieve immediate financial pressure due to the real estate recession, 2) offer previously foreclosed homes and city or government owned vacant properties at a minimal rate to people who are legitimately interested in becoming homeowners, and 3) increasing the tax incentive for first time homeowners and expanding this to apply to more individuals seeking property ownership. If applied in concert with each other, these approaches will have a stabilizing effect on the real estate market and specifically the foreclosure crisis.
Homeowners who purchased property during the period of rapid real estate value increase now face mortgages based on inflated home value that was never realized. As the market has bottomed out, these homeowners are left with the prospect of paying off inflated mortgages on property with less home equity than originally bought for. As the recession has deepened it has become clear that mortgages of this type are a crushing obstacle for homeowners. My plan proposes an option for r...
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... $8,000 incentive would now be available to anyone buying a home. Combined, such a program would shore up the market fallout with guaranteed assistance for those seeking homeownership.
In considering the plan as detailed, it is apparent that any one of the three approaches of a restructured long-term mortgage, low cost homeownership opportunities, and expanded blanket incentives for homeowners, could be undertaken with expected effects of stabilization for the real estate market. However, if implemented in concert the combined effects of each component of the plan have a widespread potential to supplement each other. In shoring up individual facets of the real estate market that have proven volatile to prolonged homeownership, the cumulative effects of such a plan will provide increased security for homeowners and an increase in quality of life across the board.
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