Would it be smarter for the government to just buy up all the distressed homes in the US with $700 billion?
They could be a ton of homes on the market for that money. They'd put cash back in the homeowner's hands, the mortgages would actually be worth something again and the banks would be saved.
Unless I'm missing something here?
Please weigh in!
Answers
2547 points
Oldman answered 2 months ago …
And what would happen to the tile's of the property if the original martgagee were to default and leave...would the US govt need to maintain the property, and keep up it's carrying costs of insurance, utilities, and other taxes to lacalities, until it might sell at a recovery price? I don't think I would want to replicate a Fannie Mae + FreddyMac + bank holding company in the public sector...there's too much additional cost and labor involved.
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3127 points
EthanR answered 2 months ago …
It would be fun to see homeless people living in million dollar homes! Seriously, I'm not sure it would work. Maybe I'm just not understanding your explanations.
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