The Holmes Solution may have better odds of success if the 'transitional banks' had authority to immediately begin renting or leasing these toxic entities out to individuals, families, businesses or whomever, in need of a residence or a place to live and work. In this way we can begin to receive a return on our investment as quickly as we acquire them from the banks rather than sitting on these toxic assets that could remain vacant for months or even years.
In many cases, families who are unable to make their skyrocketing mortgage payments and incapable of refinancing due to their shrinking equity base who are forced into foreclosure, could be allowed to rent or lease their former homes at a much more affordable rate, possibly with the payments applied to the re-purchase of their home at a more reasonable current market value.
The government can avoid much of the bureaucratic expansion involved in the initiation of this program by partnering with the depressed Realtor industry who are well equipped to handle the many transactions involved in leasing and rentals including, establishing rates according to the current market conditions for specific areas or locations. They would be compensated by commissions established beforehand by the government. This would provide immediate relief to the many who are directly affected by the ailing Housing crises.
The solution mentioned here is not ideal. Banks are frozen with toxic assets and hundred of thousands of vacant foreclosed homes and property. We, as taxpayers want to help our economy and our country. But we want some assurance that we can get our investment back. This program will get the housing market moving again by creating immediate returns. It will help revitalize the Realtor industry and keep people and families in their homes plus providing additional housing for hundreds of thousands at affordable rates. There are no 'free' bailouts for anyone. Only the American people can benefit.
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