Contact Me

  • Tony Arko - Realtor®/Broker-Owner - Complete Home - Loudoun County, Virginia
    [email protected] 571.238.6882

    View Anthony Arko's profile on LinkedIn

Google Analytics-LF


  • Visitors

« Get Your Brokers License You Slacker | Main | Feet Dragging by Banks Leads to Murder »

June 24, 2009


Kenneth G. Smith II

If someone can pay rent, that rent can be considered part of a mortgage payment. The government is providing $8,000 for first time buyers, so why can’t the government pay part of the payment and have the borrower repay the government in the future?? Here is an example of how it could work.

• Mr. and Mrs. ZZZZZ have a mortgage payment of $1,170 ($200,000 loan with 30 year payout at 5.75% interest).
• The ZZZZ’s lose their job and can only pay $470, so the government pays the difference of $700
• So the ZZZZ’s remain homeowners and work through their problem. It takes the ZZZZ’s 10 months to get back on their feet, the government paid out $7,000 and now the ZZZZ’s owe the government.
• But the government says okay, you can start paying us back in seven years and the payment will be over 10 years at an interest rate of 3%.

What the government has done is to provide assistance to the property owner (just like the bailout plans for the Financial Industry and Automotive Industry) and requires them to pay back the obligation starting in seven years. This is not a freebie, but short term assistance. Franklin Roosevelt called it Lend Lease.

This program is not perfect, but it can assist a lot of people who want to own homes. Most importantly, it is channeled directly to the property owner, not a large corporation that has other motives besides keeping the property owner solvent.
A significant benefit of this program is that payments to financial institutions will resume and cash flow will get back to normal levels, thus credit availability should improve.

There needs to be conditions such as confirming gross income via income tax statements; confirming employment and confirming current payroll. The only group of individuals who would be excluded are those who own more than one property (there should be no break to the investor who treated real estate as a business) and cases where mortgage fraud exists in the form of straw buyers and invalid sales (properties that sold more than three times within five years and the value change was greater than 150%).

This total assistance would be capped at $50,000 and could run for 24 to 36 months
In a given year up to $25,000 could be provided.
The government would be releasing the funds over 12 months, thus the federal outlay would be limited.
The total cost of $10 million loans receiving assistance would be $250 billion per year or $500 billion in total.
This is much cheaper than the TARP bailout and part of this can be funded with the current $70 billion in TARP repayments.
The greatest difficulty in implementing this program is processing and accounting. Loan Servicing companies would need to add staff (if one servicer can process 50 applications a week, 4,000 servicers would need to be hired, plus additional support staff) Wow, as many as 10,000 new jobs would be created. Add to this job creation the fact that several million homes do not go into foreclosure and more jobs are not lost due to desperate situations.

Yes it is possible and yes it can work.

The reason it can work is because real estate goes through cycles. If people are forced to sell at liquidation prices, everyone loses. Give property owners a chance to get back on their feet, get back to work and the whole economy starts to turn around.

As stated earlier, this is not perfect and many will complain about the injustice. But think about the injustice of the corporate bailouts, the injustice that first time home buyers get a break, the injustice that shareholders come before the individuals who created value in the companies by buying products. One can go on and on, or we can try.

We only fail if we do not try.

Tony Arko

Kenneth, You make a very compelling argument for creating an entirely new program to bail out homeowners that maxed out their credit limit by buying too much house at too high a price and left themselves no room for error.

All the while many others were smart enough not to over extend themselves and decided to rent instead and wait for the market to correct. These people need no bailouts, no additional taxpayer relief plans. They just need the banks to foreclose or the homeowners over their heads to move out and rent somewhere else.

There are hundreds of families ready to buy as soon as the market gets back to normal. But normal won't happen until the governments stops trying to fix the problems that they created.

I, for one, do not want to subsidize those who were irresponsible in the past. I believe my hard earned tax dollars would be better spent today fixing other problems or paying down national debt.


I agree that we need to pay down debt and have less government involvement. But, I do not agree that all of the people who are in distressed situations today over extended themselves. There are houndreds of thousands of hard working people who lost their job or had pay reduced because of this recession. It is my belief that we need to provide assistance, not a baliout.

What is proposed is assistance, not forgiveness. How many times in our lives have we stopped to help people? The mess that exists does not fully lie at the fault of the taxpayer.

And yes, taxpayer. We are talking about assisting taxpayers. Pork Barrel Projects and other waste should be eliminated, and subsides exist in many tax breaks, included $8,000 for new home buyers.

Taxes should be equitable, but they are not and buy offering assistance we are recognized that many people need help. Look at how much Federal Aid poured into New Orleans after Kitrina, the list can go on and on.

Thanks for your honesty and open discussion.


The market in Loudoun County has a ways to go down - watch for prices to fall for the next 2 yrs - credit or no credit

San Antonio Real Estate

We're faced with the same market in San Antonio. As long as these dead beats keep getting rewarded for not paying on their mortgages or giving freebies away to people who usually don't pay anyway we only worsen the problem. How about rewarding the good paying citizens and helping out the people who pay the bills...

Poplar Bluff Real Estate

Your housing voucher is based upon your income as well as the cost of the rental units in your market area. You will NOT qualify for a three BR unit, regardless of the age difference, since both children are of the same gender.

Minnesota Short Sale Agents

Really nice post! I you have define your Whole thought very well..i really like the way you Express your thoughts!


Choosing amongst a myriad of great things was not at all my strong point, so when I had to choice my culmination ten computer games, I was finally faced with a challenge. After some contemplative (and I mean indeed judgement sometimes non-standard due to), this is the tabulate of games that I know are praiseworthy to be mentioned in my surmount ten computer games article.

Lately, tons people enjoy playing video games on consoles such as Ps3 and Xbox 360 because of inspiring games and the effortlessness of use. Sundry consoles sign in with a outstrip graphics easter card that allows quest of deeper gaming experience. So does this at any cost the objective of PC gaming era? Undeniable not. Computers gave creation to the video engagement industry. In contradistinction to the consoles, computers oblige been around on more than 25 years. All the years of experiences count up up to recovered games and it conveys the essence that pc gaming compel be around for a lengthy time. Even today, computer gaming leads the gaming industry because most gamers are PC gamers.

3) Discharge’s start with some dressup games irate birds and some unversed pigs.
I cannot ponder my top ten computer games shopping list without this game. Ireful Birds is a simple devil-may-care bold, but who am I kidding? You probably recognize what Fuming Birds is. And if you aren’t wiped out bored with of having played it on your android phone, iPhone, tablets, iPad, roku etc, you can also play the darn fetish on your computer!

2) StarCraft
Is it lapse that more than half of my top ten computer games consist of strategy games? The constant cannot be said someone is concerned consoles. PC games be contradictory because you as a matter of fact secure to ‘contemplate’ and be clever, notably in this meeting; Woman Craft. Individual aspects of the trick such as motivation, technology, biology, and a beautiful story force this stratagem one of the most popular loyal time strategy game. This group of galvanizing and addicting gamble cannot be establish in consoles platform. The exclusively in work to comprehend what I am talking about is to vie with this ploy, you are dependable to understand then!

Computer games are the best games in the fresh gaming era. Console games are capable too, but absolutely not as pleasant as ones I play on computer in my opinion. My register of outstrip ten computer games may revolution in the tomorrow's as PC gaming commerce is immense and with a view satisfied, it intention matrix for decades to come.
<> dress up games ]


I found Your site very useful for myself. i would like you give me a right to repost your info with a link to your site?

The comments to this entry are closed.