Real economic recovery – 1 year mortgage holiday

Here’s a plan that would help all Americans, and provide immediate economic stimulus

SAVE OUR ECONOMY!

Quick Relief and Stimulus for Our Nation’s Economy AMERICA’S ECONOMIC STIMULUS & RECOVERY PLAN A ONE-YEAR MORTGAGE HOLIDAY:

You will not have to make any monthly principal and interest mortgage payments for one year under this common sense economic stimulus plan!!!

Congress should pass immediate legislation for the President to sign into law that offers temporary relief for twelve months for all homeowners and business owners who have mortgage/trust deed/note debt obligations for a one-year mortgage moratorium forbearance period.

You would not be required to make monthly principal and interest mortgage payments for a one-year forbearance period on your mortgage debt obligation.

Imagine what the American family, consumer and businesses could do with their extra cash: Pay down their personal and business credit card debt or fund college education to help build a better America, make donations to their charity of choice, rebuild their personal savings accounts, and of course spend the money back into the business community, providing jobs, and stimulating our economy.

Most importantly, this plan will lift the spirits and morale of the American people. It will help restore confidence in the economy and stability to the financial credit markets. It will restore trust in our elected government officials and create hope for our families and America’s future.

This is the ultimate WIN WIN for Democrats, Republicans, Liberals & Conservatives… ALL AMERICANS!!!

Repeat:  ALL AMERICANS.

How it would work

I just thought of the renters.  What about the renters?  (Just noticed:  There is a provision for renters in the plan.)

Posted:  02.20.09

H/T: MsM

8 Comments

Filed under Financial Crisis, politics, Uncategorized

8 responses to “Real economic recovery – 1 year mortgage holiday

  1. In response to your question “How about renters?”

    It’s simple. Renters benefit too. That way, they also play a major role in doing exactly what you just said, “refueling businesses (the economy)”.

    If the stimulus allowed mortgage payments to freeze for one year and incentives were still present (to buy a home), collectively this would bring more buyers to the surface.

    So, how would renters benefit? Well, it would be up to the owner of the home to either cut the cost of rent during this 12 month period, or risk losing their tenant to a better deal, including cheaper rent elsewhere, or buying their own house (if qualified).

    Simple, right?

  2. BRAD HOLZAPFEL

    I SUPPORT IT!

  3. Kathy Landru

    I am all for it.

  4. Rob

    This is an awful idea. According to lending standards you have to have 10% reserves of everything you lend. If you stop the cash flow of banks by “freezing” mortgages you effectively ruin the cash flows of banks. If you ruin the cash flows of banks they will be unable to lend money to business owners and individuals and most likely you would cause the banks to go insolvent. Also, since banks can lend 10 times what they have in reserves their economic factor of a dollar is 10 times whatever they have in reserves. If you freeze mortgages, do you think the money that is saved is going to be pumped back into the economy at 10 times whatever the individual homeowner is saving? The answer is no, it won’t and the reason is the majority of consumers buy foreign products from your “big box stores” and your big box stores buy directly from the foreign consumnable provider. Thus you’re economic factor of a dollar is literally 2 (three if there’s a distributor involved). Therefore, you are missing out on 7 to 8 times the economic factor of what a bank could do with money that is rightfully owed to them. Remember everyone who signed a mortgage, signed a contract with a bank promising to pay back the money to the bank with a stated interest rate. No one forced the individual consumer into signing the contract, the consumer knowingly and willingly signed it. This is just an awful idea, albeit with good intentions, that would lead to a huge economic collapse.

  5. dan

    i couldnt disagree more. american people are known for spending. if a household with a mortage of $3000 a month saves for 1 year meaning 36k, you dont think that money would be instantly be getting pumped into purchases. this would for sure pump up the economy and it would all be solved in one year. people would also be investing a lot more money into the market to also help out the stock exchange. this idea should be done immmeadiatly.

  6. This would be a great time to blog about this again. The public is much more likely to see things your way. Good luck.
    James Pilant

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