Finally! Another Idea!

from Salon

A Better Solution to the Financial Crisis: Ian Welsh has an idea that would work better to deal with the financial crisis in the US: “What the government should do instead is set up a Trust to buy mortgages at a discount, then reset them to 20, 30 or 50 year fixed mortgages with a reduced face amount. If the house is later sold, half of the increase goes to the government, so that taxpayers make a profit. The mortgage cannot be paid off before the end of its term so that financial scavengers cannot come around and, as they did over the last ten years, say ‘get rid of that mortgage, and take ours. It’s better. Honest!’, because we know that when they say better, they don’t mean better for the mortgage holder. The mortgage is attached to the property and is transfered to any new buyer. And the mortgage cannot be removed from the property, and any new mortgages attached to the property are junior to the government mortgage.” Thanks to Jon Husband for the link.