Part III Separate the Housing Market from the Work Place Economy

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Part III Separate the Housing Market from the Work Place Economy

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The International Institute of Nonviolence

News&Opinion

By: Rev. Jermano

Here is Part III I have promised in explaining my idea for fixing America's Housing and Banking Servicing  Problem. There are many things I want to see CHANGED in America...

One is Energy Independence and supporting Geothermal Development.

http://my.nowpublic.com/world/give-me-energy-independence-or-give-me-death

These ideas were submitted to President Obama's Change.gov website.

http://change.gov/page/s/yourstory

Now for the Housing Crisis. I want to explain how we need to change the banking services offered to the people in acquiring their homes, and building living communities instead of Gypsy down-trodden communities. We need to separate the Housing Market from the Economic Work Place Market.. People need to stop using Real Estate as a means to gaining money. What they do is artifically inflate the prices to housing in America. Each and every home is expected to gain value after a buyer buys it...and that is fundamentally flawed. The price should remain the same....if not devalue because each year it gets older.

We should look at houses the same as when we buy a car. We don't buy a car hoping the car will increase in value. It always decreases...so we need to stop the hedging conspiracy on the Real Estate Market...which gives America it's false economic projections. Loans will always default and or homes remain vacant because no one in their right mind will spend all that money on a house...In other words Appraisers have been lying all along. ..and Banks fell for their lies.

We need to get away from equity holdings as real money...and think about it in another way. That way is placing value to a persons credit rating....or what I call Credit Appreciation..... No longer will the market tell what a houses value is...The banks will determine the price according to the age of the property, the improvements on it....the cost of labor....and its' yearly devalue due to age.

In other words property will remain stable, unless improvements are added on. The bank issues what I call a 2 Loan Mortgage Payment plan. One loan pays for the other. This is done because the Banks are the stabilizers in the community.

Banks of yesterday relied on people and their jobs to make the mortgage payments..But jobs are always in flux, and people are laid off work. We have always combined our housing market with the work place environment, and that is a recipe for unending failure. The work is so volatile and changing it can not support the housing market to make sure mortgage payments are paid on time.

So banks need to secure their investment away from the work place environment. Banks are in the lending business, so they will always be there to provide loans to people. A 2 Loan Mortgage Policy is like having 2 credit cards. One pays the payment on the other. While this is happening the persons credit rating increases in value as time moves forward.

If the money runs out from the 1 st loan. a 3rd is used to finish off the payment cycle.....and until the loan has been fully paid.  The person who lives in the home or the buyer...pays a standard living fee that is applied to the upkeep of the house so the house never devalues each year.

Essentially the Bank is the real owner all the time. When the person wants to move or sell the house...all he needs to do is switch his credit approved appreciation to another home deal made through the service of the bank. This assures home owners never default on their home loans, while also giving homebuyers the assurance they will never have bad credit ratings. Homes will therefore never have inflated values, and never succumb to devalue because the homeowners make a payment each month for the homes repairs or improvements. It will become impossible for a home to foreclose, due to the nature of the system, The 2 Loan Mortgage Policy represents.

The loans will run onward for as long as the house is being owned by the buyer. Obviously if one loan is being paid by another line of credit, there is still a new new loan now that needs to be repaid. But this will not matter because the buyer will always have good credit to pay that as well. The theory is Banks will always be in the lending business....that is the nature of their service...so banks should give the loans on the basis of credit appreciation and the cycle it provides to buyers.

Banks will be servicing the loans that need money to operate and the Treasury Department is there to provide that money. We want to have Americans in their homes and working in the community. We don't want homes to be speculation objects for gaining wealth..Therefore separating the Housing Market from the Work Place Economy will strengthen America.

Banks therefore shoulder the responsibility and are the pillars in the Community. How do banks make their money? They make it by the required downpayment they receive from each home they finance. If a home costs 100,000 a person needs to make a 10% down payment to get into the loan program.

So banks will compete with each other on who offers the lowest downpayment requirements.The more people who get loans through a certain bank makes that bank a good place to have people invest their money in on the Stock Exchange.

The buyer who gives the 10% downpayment {or whatever required % payment is asked} will never will see that money again...except having it register on his credit appreciation rating .

For instance his credit rating for the 100,000 home was 100,000 and he gave 10,000usd as the downpayment....his credit rating has now increase to 110,000 usd. Also as time goes on when the bank makes the payment with the 2 Loan Mortgage plan; his credit rating increases let's say: .1% per month. In time he will have a substantial credit appreciation, and can use that to move to another or richer home to his choosing.

This plan assures stability in the housing market, while giving benefits to the bank and to the buyers...and sellers.

This plan would help stop the craziness in the USA. It will bring stability to the housing market, and eventually bring stability to the work place economy.
We will end the gypsy mentality.

I hope you will help me realize this great plan for the American people, and make banks our Father Institutions instead of the Bank Reapers of the people.

Sincerely,

Rev. Jermano