Seems to me that everytime government gets involved they create more problems then they solve.. LA City has been trying these types of programs but they always manage to screw it up..

Hi Kaye. How are you? Nice to see you on again. I think what is telling in this is that the city-county reinvestment task force main objective is establishing  the Regional Land Bank for investors. I do think that is a good idea if the guidelines and participants are well informed. The rest of the ideas, though well intended are really a rehash of things already proposed or rehashed from on going programs. Getting the Legislature to revitalize HUD and recreate new FHA guidelines is federal. Why do city Representatives think they have any input there. Most of the city and county elected officials at best know what is going on in their neighborhoods. But when it comes to federal programs, they are not usually qualified to influence at that level. And I am always suspect about non-profits. I am not sure in this case that they can do much to offset the foreclosures.

I had a novel thought. Why not set ALL mortgage interest rates at 5% fixed rate and set them for a minimum of 5 years before they change to market rate at the end of 5 years. If the rates can actually be so easily manipulated, fix them all, that is ALL as in every single mortgage in existence in the US.  Everyone gets a  once in a lifetime shot or opportunity to get it right. After 5 years, they go back to market rate. No more refi's permitted. If you want your equity out, only equity loans would be approved. And no one can refi out greater than 80% LTV as long as they are under the fixed market rate of 5%. It would prevent gaming of the systems and everyone would be on the same plain. This of course will not happen but you could see the amount of correction that needs to take place. I suppose many would still think, if government can do this once , there is always a chance they could do it again and that would create totally unstable markets.