This is a continuation of last week’s discussion with real estate and luxury home legend Bob Dyson, who has a radical proposal that is being quickly embraced by Realtors, lenders and local Real Estate Boards.
Why resort to radical resolutions?
Because, says Dyson “This is a real estate depression–a serious, serious issue.”
He sees an immediate need to stabilize real estate markets and neighborhood values. He also believes the motgage lending industry needs to get out of the “asset management” business, and instead focus attention on new loan originations.
So what to do with all those defaulted loans and pre-foreclosures?
That’s where Dyson’s proposed “American Incentive Resolution” saves the day.
How would it work?
1. The American Incentive Resolution Corporation (as a government entity) would buy defaulted loans from lenders at 50 percent of face value.
2. Re-market these homes through Realtors at retail market value.
3. Offer these homes to first time buyers and those whose credit and FICO scores have been damaged by short sales and foreclosures the last couple of years. The initial terms would be a 12-month lease-purchase, with all payments accruing to a down payment as long as payments are made on time. Lease payments would equal what loan principle, interest, taxes and insurance would be under normal loan terms at 5 percent interest. Initial move-in would entail first and last months’ payments.
4. At the end of 12 months, the lease would become a purchase with all payments made under terms of the lease being applied to the full down payment.
The first video below details Bob Dyson’s assessment of the real estate market bottom, while the second deals with the American Incentive Resolution:[youtube]http://www.youtube.com/watch?v=uidxq2GWkdc[/youtube] [youtube]http://www.youtube.com/watch?v=yhfF-loeG9A&feature=related[/youtube]
HT: http://www.SanDiegoPreviews.com
