Dear Mr. Soros:
It seems to me -- perhaps naively -- that given the rise in foreclosures and the failure of the subprime mortgage market, that an opportunity exists to do a lot of good, make a profit, and save people's homes at the same time. If I had the money, I would buy up as many home as possible at foreclosure sales, then renegotiate the sale to those who live in the homes at a fixed mortgage rate. Since the price would be lower (yet still higher than the purchase price at the foreclosure sale, thus assuring a profit), but the interest rate fixed (even 6% would benefit both the mortgage holder and the house owners) the mortgage payments would be lower, assuring that people would not have to leave their homes and the market would be stabilized.
Obviously, this would take a lot of capital, but the returns would be substantial and the human and economic benefits rather extraordinary. The banks holding the original mortgages might suffer, but they are the ones who got us in this mess in the first place.
Just a thought. You have obviously shown a great deal of compassion for people and have resources that might be able to make a dent in what is obviously a huge problem.
Sincerely yours,
Eric Welch
No comments:
Post a Comment