Solving the Housing Crisis - an Open Letter to President Obama
New solution to the housing crisis announced by national real estate trainer, author and coach, Kelle Sparta, in an open letter to President Obama.
Cambridge, MA, February 26, 2009 --(PR.com)-- Today, Kelle Sparta, author of The Consultative Real Estate Agent and national speaker, trainer and coach for the real estate industry announced her own plan for how to solve the national housing crisis – with almost nothing out of pocket from the government. She did so in an open letter to President Obama on her blog.
In her letter, she lays out a plan to have the federal government, using money raised from the issuance of government bonds, buy the land underneath houses that are in foreclosure. Doing so would provide the following benefits:
Homeowners get to keep their homes at a payment they can sustainably afford.
Banks get back 25-33% of their capital from outstanding pre-foreclosure loans, allowing the bank to convert an impaired asset into a performing asset which boosts the bank's asset rate and lessens reserve requirements, strengthening its balance sheet. This makes the bank more stable, reduces the stress on government resources, and ultimately increases the availability of funds for consumer loans.
The government gets asset-backed securities in exchange for the funds invested and then gets to sell those investments to bond holders.
Investors get asset-backed bonds with guaranteed ROI.
Local governments get additional affordable housing in communities.
For those properties that still foreclose (which should be at a much lower rate than current re-writes), banks get quick purchasers of the foreclosed homes.
For complete details of the Sparta Solution, please see her blog at:
http://activerain.com/blogsview/949474/Solving-Some-of-The-Housing-Crisis
Kelle Sparta is the author of The Consultative Real Estate Agent (AMACOM Books 2006), a regular columnist for Realtor Magazine, and contributing author on RIS Media and Broker Agent Pro. She is a national speaker, trainer and coach specializing in the real estate industry. She is the founder of Sparta Success Systems, a real estate training, tools, and coaching company founded in 2004 and based in Cambridge, MA.
For more information, go to www.SpartaSuccess.com. Questions can be directed to: Kelle Sparta at 508-243-6257 or via email at KSparta@SpartaSuccess.com.
###
Contact:
Kelle Sparta
508-243-6257
KSparta@SpartaSuccess.com
In her letter, she lays out a plan to have the federal government, using money raised from the issuance of government bonds, buy the land underneath houses that are in foreclosure. Doing so would provide the following benefits:
Homeowners get to keep their homes at a payment they can sustainably afford.
Banks get back 25-33% of their capital from outstanding pre-foreclosure loans, allowing the bank to convert an impaired asset into a performing asset which boosts the bank's asset rate and lessens reserve requirements, strengthening its balance sheet. This makes the bank more stable, reduces the stress on government resources, and ultimately increases the availability of funds for consumer loans.
The government gets asset-backed securities in exchange for the funds invested and then gets to sell those investments to bond holders.
Investors get asset-backed bonds with guaranteed ROI.
Local governments get additional affordable housing in communities.
For those properties that still foreclose (which should be at a much lower rate than current re-writes), banks get quick purchasers of the foreclosed homes.
For complete details of the Sparta Solution, please see her blog at:
http://activerain.com/blogsview/949474/Solving-Some-of-The-Housing-Crisis
Kelle Sparta is the author of The Consultative Real Estate Agent (AMACOM Books 2006), a regular columnist for Realtor Magazine, and contributing author on RIS Media and Broker Agent Pro. She is a national speaker, trainer and coach specializing in the real estate industry. She is the founder of Sparta Success Systems, a real estate training, tools, and coaching company founded in 2004 and based in Cambridge, MA.
For more information, go to www.SpartaSuccess.com. Questions can be directed to: Kelle Sparta at 508-243-6257 or via email at KSparta@SpartaSuccess.com.
###
Contact:
Kelle Sparta
508-243-6257
KSparta@SpartaSuccess.com
Contact
Sparta Success Systems
Kelle Sparta
508-243-6257
www.spartasuccess.com
Kelle Sparta
508-243-6257
www.spartasuccess.com
Contact
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