I just found this article about an incentive program for homeowners called "Cash for Keys". It rewards those who leave their foreclosed homes quickly, and in good shape. Read more about it here. I believe we touched upon this subject before, and many people found the whole concept unfair.
What do you all think? My thoughts are that sure, it may be a little unfair, but it's also a good way to get these homes in government hands quickly and with minimal damage to them.
I think this is a good concept. I do believe that the forclosure crisis and mortgage crisis is overall an unfair situation for the people involved and who are stuggling. However I think that giving these people an incentive to move out is a good idea. I know that many people who are going through foreclosure stop taking care of their properties, and often time damage their property immediatly before they are forced to leave. I think giving them a small amount of hope with a cash program could do a small justice for them.
ReplyDeleteAlthough this is going to be very expensive it is partially taxpayer money anyways. We might as well get the funds moving and help the people these funds were actually ment to help, taxpayers. These fees are also a bargain when the real cost of a vandalized home is taken into acount, hopeing that they are doing the math well.
ReplyDeleteI agree with Zach, that this will cost a lot of money, but currently, the damages and time that would have to spent on the home before might be even more money. I think this is a good idea to help keep the community surrounding the home appealing so that other home buyers will quickly buy the house. But I also agree with aaron, that this could give people incentive to have their home foreclosed. I think they should do more research to find a bullet proof system because I think this could really make a difference.
ReplyDeleteI think it's a good idea to provide an incentive for people to leave their homes once they go into foreclosure. If they are going to lose their home anyway, they might as well leave sooner and receive a reward, rather than stay longer and let the house continue to lose value. I guess the big issue will be balancing how much cash to give homeowners vs. how much value the house will lose if the homeowner stays in the house. If money can be saved by giving homeowners cash to get the house while it's still valuable, then I think this program would definitely help.
ReplyDeleteWhile this is extra money up front, it seems to me like it still saves money in the long term by preserving the home's value and not forcing us to go through a long and expensive process where the home is likely not being cared for.
ReplyDeleteAfter attending a conference with the Kalamazoo Investment Club, I had the opportunity to talk to gentlemen at the Federal Reserve who was a specialist on the real estate crisis. I asked him his intake on what he thinks needs to be done about the loss of money borrowers are unable to pay back. He emphasized that the if for our economy to steer away from another crisis and to get house prices up, people must try different alternatives to do what they can to pay money back. We discussed how loan modifications and foreclosure alternative (specifically short sales) were sound options for both banks and lenders. With this, I do not think it is fair for people to just walk away from their mortgage and even get cash back. If that house is never sold who is left to pay for that lost money? Our economy will be the one to pay!
ReplyDeleteI agree with Alex. I think investing a little money now will really help in the long run.
ReplyDeleteThis system makes no sense for the big picture of society. It is unfair to those who work hard just to keep their noses out from under the water, and it most certainly does not help the housing or homelessness problems.
ReplyDeleteI am mostly concerned and puzzled as to why you think it is a good idea for all of the homes to be "in government hands quickly"...? Elaboration on that would be much appreciated.
I too wrote a post on this topic if you would like to check it out. http://www.favorfreedom.com/2013/08/cash-for-keys-how-does-this-make-sense.html