An idea to save Social Security and fix the Mortgage crisis at the same time

[Tony_FLADEM]

What if the government was to purchase foreclosed homes, and was to give people near retirement the option of receiving a free house (or at a discount) in lieu of receiving a Social Security payment for the rest of their lives.

People would benefit because they would receive ownership in something that could appreciate in value. The government would benefit by saving on Social Security payments, and the housing market would stabilize.

The government would use it's purchasing power to buy these assets at a discount and people would use these assets to increase their overall net worth.

[recoveringrepublican]

1. What happens if they have to move? nt

[MineralMan]

2. Few would take you up on that deal...

For one thing, many people at retirement own their homes outright. I do. Secondly, even though I took my SS at age 62, it amounts to over $12,000 a year. I'll probably live another 20 years, based on my parents age now at 84 years, and still kicking.

While that's only $240,000 total I'll receive in SS over those 20 years, the fact that I own the house outright means that it would make no sense to me.

I paid just $160,000 for the house.

For most retirees, it's the incoming funds that are important, rather than the living quarters, I think. Not a bad idea, though.

[Cessna Invesco Palin]

3. Two words:

Property taxes.

[auntsue]

4. A house and no income

If they give up Social Security benefits for the rest of their lives - what do they use for income ? Where will the get $$$ for food utilities etc ? There'll still be taxed and other expenses.

[hendo]

12. I was about to point that out

before I saw your post.

[RB TexLa]

13. Just to play along, they could use a reverse mortgage.

Like I said, just to play along. I don't think this is a good deal either.

[Cleita]

5. And in lieu of a SS check what are the senior citizens supposed to live

on? Social Security doesn't need saving other than to get its funds secured and out of the hands of predator Republicans who would feather their nests with it. I think it would be better to work with the owners of homes near foreclosure, giving them the money and working out a plan for them to stay in their homes, like a fixed rate mortgage in which they pay the same amount every month for the life of the loan, like it used to be back when banks were regulated.

[napi21]

6. I don't see that working very well. Anyone who doesn't have a home

when they reach retirement needs the monthly income from SS to buy food and pay for meds, neither of which would be provided by owning a house.

I thought having the gov't purchase the homes that were facing foreclosure, but I changed my mind this AM. MSNBC had a report that 50%+ of renegotiated mortgages of 6-9 moinths ago were facing default AGAIN. That's sure not a good track record.

[Cleita]

8. I would look deeper into the MSNBC story.

Exactly what were the terms of the renegotiated mortgages that caused them to be vulnerable to defaulting again? I'm smelling something fishy in Denmark.

[napi21]

11. I'm sure they're all different so it's impossible right now to know

if there was something "fishy", but my guess is that because so many people have lost their jobs recently, THAT would be one of the big reasons.

[OHdem10]

7. Are you aware of the millions for whom SS is the only income

they have????

[Skink]

9. Social security is fine. Benefits are going up.

[ashling]

10. What about the Govt. buys the loans, renegotiates the payments

comensurate with the real value of the home, and the payments on those renegotiated mortgages goes into the Social Security Trust Fund? :shrugged:

[suston96]

14. I agree with SS doesn't need saving - the economy and jobs growth is what's needed....

.....that will take care of the SS "problem" (that isn't a problem).

More important - foreclosed homes? Who or what is going to take care of the people who have lost their homes?