If you know anyone who is rich in cash and would love to help America I think that a bank that services the people in trouble with these upside down mortgages would be welcome. Yes, in other words imagine a bank that would purchase the foreclosed house at value which is a lot lower then the mortgages owed and turn around and sell the house back to the owner at a reasonable rate (value) so the owner could afford the payments and have an interest rate that is humane. Imagine that this bank was for the people by the people yes there would be profit for the bank reasonable not excessive, it would take the property out of the hands of the crooks who have it now and whose interest isn't the consumer.
Is this insane? Why not? I think if I won the lottory that is what I would do. I would open a bank that specialized in purchasing foreclosed property with an eye to rematching the previous owners in a more adjusted rate so that they could afford their homes.
The tragedy of the bail outs is that the government should have insisted that the banks do this NOW as part of the billion dollar bail out. I know they are working on it in congress still I think it is a grand idea since these people are responsible for these crazy loans in the first place.
Lets help each other.