What if:   Lenders stopped charging interest on loans for those “upside down” with no equity in their homes? Those property owners continue to pay the same amount (and it continues to be tax deductible) for a period on two to three years. Most of the payment on those bad loans are still 99% interest. Now it would all go to reduce principal! Most loans would be “right side up” in 12-36 months! For each zero interest payment made, another payment can be added to the loan. This is totally offset the amount owed and in most cases, the loan is new (post 2004) so most of the CURRENT PAYMENT is interest).

The lender keep the revenue flowing, property taxes continue to be paid as the same part of escrow will go to escrow. This will slow down considerably the free fall of foreclosures and equal up the supply and demand factor. This will increase absorption rates so an overall acceleration of the recovery would follow.

There are lots of little “tweaks” that must be made, but I will leave this up to those in Washington much smarter than me. I think this will help if the right people got involved. For more information on real estate in Tampa Bay, go to http://www.headofrealestate.com

 

 

 

 

Filed under: Florida Real Estate, Political, Property Tax, Sports, Uncategorized, florida, real estate, tampa real estate, tampa realtor