David Kirkpatrick

November 6, 2008

Zero percent mortgage?

Filed under: Business, Politics — Tags: , , , — David Kirkpatrick @ 4:39 pm

It’s a bold idea, that’s for sure. As long as I could refinance mine at the same terms I say go for it. Of course this concept only applies to foreclosures. Drat.

From the link:

This got me thinking about the home industry and how zero-percent financing would work to start the wheels of buying and selling for the most critical patient in the country’s economic intensive care unit. While not a perfect analogy, automakers and home builders each produce an expensive product that their customers need to finance upon purchase. Why not KB Home, Pulte Homes and Shea? “Open House This Weekend, Zero Percent Financing.”

And taking it another step further, I thought about all that bailout money sitting in those bank vaults. If they won’t lend it, then Uncle Sam should use it to do fund a zero-interest comeback for the housing industry.

What if the federal government bought back foreclosed homes from those banks instead of giving them cash and then turned around and sold them using “zero-percent financing?”

Want to buy a house? Let the federal government sell it to you, as long as you have verified income that shows you can make payments. That median-priced, $300,000 foreclosure would be fixed at zero percent over 30 years, payable to Uncle Sam. Mess up the payments and taxpayers take it back and we try it again with another home buyer under the same terms.

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