Market Bottom and a Radical Resolution


by Roberta Murphy

market bottom
Bob Dyson

This is a continuation of last week’s discussion with Bob Dyson, who has a radical proposal that is being quickly embraced by Realtors, lenders and local Real Estate Boards. Let’s create a market bottom, sooner rather than later.

Why resort to radical resolutions?

Because, says Dyson “This is a real estate depression–a serious, serious issue.”

He sees an immediate need to stabilize real estate markets and neighborhood values. He also believes the motgage lending industry needs to get out of the “asset management” business, and instead focus attention on new loan originations.

So what to do with all those defaulted loans and pre-foreclosures?

That’s where Dyson’s proposed “American Incentive Resolution” saves the day.

How would it work?

1. The American Incentive Resolution Corporation (as a government entity) would buy defaulted loans from lenders at 50 percent of face value.

2. Re-market these homes through Realtors at retail market value.

3. Offer these homes to first time buyers and those whose credit and FICO scores have been damaged by short sales and foreclosures the last couple of years. The initial terms would be a 12-month lease-purchase, with all payments accruing to a down payment as long as payments are made on time. Lease payments would equal what loan principle, interest, taxes and insurance would be under normal loan terms at 5 percent interest. Initial move-in would entail first and last months’ payments.

4. At the end of 12 months, the lease would become a purchase with all payments made under terms of the lease being applied to the full down payment.

The first video below details Bob Dyson’s assessment of the real estate market bottom, while the second deals with the American Incentive Resolution:

American Incentive Resolution part Two

American Incentive Resolution part Three

2 responses to “Market Bottom and a Radical Resolution

  1. “Be careful whom you make your protector lest they shall become your jailer.” In other words, keep government out!

  2. We need more competition in the mortgage business. The local mortgge companies that were local were almost killed in the lending frenzy. They are still alive in New Orleans since we are more conservative and behind the trends good and bad. Let Fannie and Freddie have some local competition with the same backing as they get.

    Move them out of the Northeast, gett them closer to the people and away from Washington. Giving the CEO hundreds of million in bonuses that created this mess is a miscarriage of justice. People should treat my tax money like the earned it. I know I work hard for it. Just pissed since we could see this coming a few years ago.

    Got my blog up and running. Thanks for you comments and time you spent with my questions last year. On Hurricane vacation.

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