The $1 plan

[jmpman]

Irate about the potential mortgage write downs, I’ve started thinking of other proposals which would work economically, and not offend my free market sensibilities.

I call it the $1 Plan.

Homeowners who are unable to afford their payments can disclose their full income to the bank. After calculating the maximum payments the homeowner can afford, the bank then offers the home on the market, starting at $1 over. Anyone is allowed to bid on the property, and after 30 days, the highest bid wins. Of course, if nobody bids on the house, the current homeowner gets a write down to the agreed upon price.

This plan would discourage fraudulent under reporting of income, as the homeowner requesting a write down would effectively open up their home ownership to the free market.

Would this work? What are the unintended consequences?

This would create a swarm of properties on the market, so we’ll need a swarm of buyers.

Would we need an additional provision – during the 30 days, the homeowner would be allowed to bid on any other properties valued under their approved price.

At least this seems like an interesting Game Theory problem.

[NotCranky]

I like the idea but you are right it probably has pitfalls. Who know if there are more or less problems of equity than other potential solutions. I like it though. Do you let the owners who get the boot have their credit restored so that they can play the game on the next house up for ? That might have significant impact on the buyer pool and therefore result of your plan. Of course the dislocated owners probably don’t have a down payment.

[NotCranky]

I like the idea but you are right it probably has pitfalls. Who know if there are more or less problems of equity than other potential solutions. I like it though. Do you let the owners who get the boot have their credit restored so that they can play the game on the next house up for ? That might have significant impact on the buyer pool and therefore result of your plan. Of course the dislocated owners probably don’t have a down payment.

[NotCranky]

I like the idea but you are right it probably has pitfalls. Who know if there are more or less problems of equity than other potential solutions. I like it though. Do you let the owners who get the boot have their credit restored so that they can play the game on the next house up for ? That might have significant impact on the buyer pool and therefore result of your plan. Of course the dislocated owners probably don’t have a down payment.

[NotCranky]

I like the idea but you are right it probably has pitfalls. Who know if there are more or less problems of equity than other potential solutions. I like it though. Do you let the owners who get the boot have their credit restored so that they can play the game on the next house up for ? That might have significant impact on the buyer pool and therefore result of your plan. Of course the dislocated owners probably don’t have a down payment.

[NotCranky]

I like the idea but you are right it probably has pitfalls. Who know if there are more or less problems of equity than other potential solutions. I like it though. Do you let the owners who get the boot have their credit restored so that they can play the game on the next house up for ? That might have significant impact on the buyer pool and therefore result of your plan. Of course the dislocated owners probably don’t have a down payment.

[Raybyrnes]

How about a Prudent Renter Bill

How about helping the more prudent renter by providing us with a write off on the first 2000 of rent a month . This puts more money back in a renters pocket and allows that family to save at a faster pace to be able to then become a prudent buyer.

I would reevaluate the 500K exclusion of capital gains on property.Eliminating it would put real estate investments on par with other asset classes.

[Raybyrnes]

How about a Prudent Renter Bill

How about helping the more prudent renter by providing us with a write off on the first 2000 of rent a month . This puts more money back in a renters pocket and allows that family to save at a faster pace to be able to then become a prudent buyer.

I would reevaluate the 500K exclusion of capital gains on property.Eliminating it would put real estate investments on par with other asset classes.

[Raybyrnes]

How about a Prudent Renter Bill

How about helping the more prudent renter by providing us with a write off on the first 2000 of rent a month . This puts more money back in a renters pocket and allows that family to save at a faster pace to be able to then become a prudent buyer.

I would reevaluate the 500K exclusion of capital gains on property.Eliminating it would put real estate investments on par with other asset classes.

[Raybyrnes]

How about a Prudent Renter Bill

How about helping the more prudent renter by providing us with a write off on the first 2000 of rent a month . This puts more money back in a renters pocket and allows that family to save at a faster pace to be able to then become a prudent buyer.

I would reevaluate the 500K exclusion of capital gains on property.Eliminating it would put real estate investments on par with other asset classes.

[Raybyrnes]

How about a Prudent Renter Bill

How about helping the more prudent renter by providing us with a write off on the first 2000 of rent a month . This puts more money back in a renters pocket and allows that family to save at a faster pace to be able to then become a prudent buyer.

I would reevaluate the 500K exclusion of capital gains on property.Eliminating it would put real estate investments on par with other asset classes.

[Raybyrnes]

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[Raybyrnes]

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[Raybyrnes]

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[Raybyrnes]

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