WHAT WILL HAPPEN TO OUR COUNTRY?

Yes, indeed I am shouting from atop the highest mountain.


Over the last three weeks I have been watching carefully what is happening to our economy and I am frightened. Really, I am frightened. I am not old enough to have seen the likes of a depression. I've been depressed but I don't think that counts. I don't think that Zoloft will help our country like it did me.


On a blog earlier today I mentioned that I had a plan. I would like to get my plan out to a lot of people and I know the mechanism to do just that. The internet. Frankly, I do not have the financial where with all to launch a marketing campaign to get an idea to the public that might not have wings.


So, this is my medium.

There I have explained my motives, now let me explain the idea. Ready?

First, excuse me as I just watched the debate and then the Daily Show and the Corbert Report, its late and I may make a mistake or two. If you see something I need to fix I a sure you'll point it out. Here goes.

What if a private organization could accumulate enough money to buy all of the failing mortgages in the country? Is that a new idea? Does anyone have enough money? Well privately no one single person could accomplish such a task.

What would happen if someone could? Would that save the economy? Let's say every single mortgage at risk of foreclosure was absorbed, could that help?


Here are a few of the benefits.

1. Banks would get the money.
2. Real estate agents would get paid. (stimulating the economy)
3. Service personnel such as inspectors, contractors and landscapers would benefit.
4. Title companies and real estate lawyers would benefit.
5 Many other entities would make money off of the sale of all of the distressed property.


The bad news is all of the home owners would be "homeless" or displaced. No, not under my plan. Under my plan they would have an option of renting the property back sparing moving and relocation expenses or they could buy it back at a significantly lower interest rate.


Here is an example:
A fixed 30 yr. mortgage for $300,000 is somewhere between $2,800 and $3,200 a month. the amortized value of that $300,000 home divided by 360 payments is $867.00. My company would charge $1,250 a month plus insurance and taxes for a rental. If the owner wants to continue to own and can afford the following $1,634 plus insurance and taxes we would extend the offer to them to own the property.


So that sounds really cheap right? Well it is 50% and 100% profit. Why would a business need more than that?


So let's assume that this extends to $300B in investment to rescue all of the ailing properties. What would it take to buy that property?


Well, I am too tired to explain it. I'll have to get back to it later today. I hope you can wait.



Mike Doran