If we just reset all default home mortgages to 100yrs/ 5% could we avoid the bailout?

[CK_John]

Some restrictions would have to apply to pass the mortgage along like take off 20 yrs for every pass on to prevent flipping or a buy down of 5yrs cash up front each time it is moved to a buyer.

Food for thought.

[JDPriestly]

1. It would work if the government refinanced the mortgages for

up to 99 years and paid the banks. It would restore confidence in the whole thing.

[CK_John]

2. I understand the banks have bundled and sold the mortgage, so I think

the buyer of the bundle would have to cut a deal with the fed to accept the new terms.

[JDPriestly]

8. The government agency would buy the bundles and then

deal with the homeowners directly. I think the current proposal permits a solution of that sort in some cases and to some extent. Individual homeowners get notices when they are being foreclosed. Another possibility is that they be invited to contact an agency of the federal government or a subcontractor of the government to discuss refinancing.

[greenvpi]

3. You haven't done the math

At 5% interest the difference in payments between a 30 year and a 100 year is only about a $1.17 per month total difference per $1k borrowed. It doesn't really help since you're not paying much on the principal anyway the first few years of a 30 year loan. All it does is guarantee people will basically be renting from the government. I know the Repukes would love that, so why are you suggesting that?

[CK_John]

4. I didn't do any math, but I assumed by stretching the loan out would reduce the monthly

nut by at least half. How about cutting the rate to 2.5% would that do it.

[leftofcool]

5. No, it still wouldn't help

There is no capital, banks are out of money

[CK_John]

6. It doesn't matter, CNN reporting a deal has been made for the bailout, no details. n/t

[pnwmom]

7. No. It wouldn't solve the larger liquidity crisis. n/t

[WestWingEmpty]

9. How about this

Take all the Mortage Backed Securities. Unwrap them into individual mortages. Put them all up for sale on E-bay.

I'd buy my mortage for 50 cents on the dollar.