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Yeah you read that right.
Maybe we here can do what Wall Street cannot and WILL NOT Maybe together, we can hatch a plan to help people pull themselves out of mortgage hell, save the banks and hold up the economy. But I need information.
Here is the plan in a nutshell.
This is only what I heard and this is where I need your help. Can any of you tell me if this is true? Do you know the laws and rulings that apply or where to find them?
After WW1, vets tried to pay off their mortgages with war bonds to stop from foreclosure of their homes and farms. The banks did not want to take the bonds. The Supreme Court ruled against the banks on the basis that printed money was a BOND backed by the US government.
Further, no bank could discriminate against the different types of bonds provided those bonds became due within 5 years of the mortgage.
To my understanding,, the court in the Jimmy Carter years upheld this ruling.
What this means is that a homeowner with a $200,000 mortgage could buy long termbonds -due within 5 years of the mortgage. They could buy them at theoretically $.10 on the dollar or $20,000. These bond could be used to pay off the full face value of the loan, The bank that holds the bonds clears the loans off the books immediately at FULL FACE VALUE!
Further the banks could lend the home owner the $20,000 to buy the bonds. Now their house payment is in line with a car payment.
And that long term government bonds are bought to back those loans holds up the community (municipals bonds), county and state and federal government.
I would also imagine that people who have already lost their homes and are in financial hell can use this plan.
This is a win/win situaton all arround.
This is all theoretical. I need help understanding to know if this is true. Can any of you give me feed back?
Can anyone tell me if this can work as I was told it could work ?
Can anyone sight the laws that can back it up?a
Can any tell me where to find laws pertaining to this?
If we can find this information, we can draft a petition and send it to our lawmakers and every bank, giving them a legal framework to pull the home owners and the banks out of the slump/depression/panic or whatever you want to call it.
The investment banks would also come out but secondarily not primarily. and only if the the homeowners and banks pull themselves out The governments local to federal would also hold up before the investment banks
Here is my background story.
If you read my bio it says my husband died recently. Well he worked for Goldman/Sachs for some years in the 80's.
In the 90's, flat broke, he decided to buy an LA apartment building with NO money. The building in Hollywood, was in debt $9 million . It was in foreclosure . The building's financial picture was upside down. The second mortgage on it was a hideous balloon payment. The depression of the 90s had deflated the real estate market and that building was not worth $9 million. There was no way the rents on that building would cover the first mortgage much less the ballon payment.
My husband put together a proposal for the boutique bank holding the mortgage. He proposed to buy the building for pennies on the dollar. The plan provided that he contract with the bank to work with them to buy a basket of bonds to pay off that original mortgage. This would allow the bank to clear the loan for the full face value of $9 million bringing the mortgage of that building to under $1 million.
The bank almost took the plan but someone came in with hard money at the last minue. Shortly afterward my husband became ill. Over time I lost the paper work.
Does anyone know if this still can work? what law can we sight to make a case that this is a workable plan? Can we wrack out brains to find a way out?
The FED is getting ready to cut rates AGAIN, Possibly a full percentage point. That cut is not going to help you or me. But together we can help each other. We MUST help each other, because I don't hear anyone in a powerful position planning to help us plebes.
siriuss
