Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

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

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
 
Tony_FLADEM Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:22 PM
Original message
An idea to save Social Security and fix the Mortgage crisis at the same time
Edited on Mon Dec-08-08 02:23 PM by 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.

Printer Friendly | Permalink |  | Top
recoveringrepublican Donating Member (779 posts) Send PM | Profile | Ignore Mon Dec-08-08 02:24 PM
Response to Original message
1. What happens if they have to move? nt
Printer Friendly | Permalink |  | Top
 
MineralMan Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:27 PM
Response to Original message
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.
Printer Friendly | Permalink |  | Top
 
Cessna Invesco Palin Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:28 PM
Response to Original message
3. Two words:
Property taxes.
Printer Friendly | Permalink |  | Top
 
auntsue Donating Member (169 posts) Send PM | Profile | Ignore Mon Dec-08-08 02:29 PM
Response to Original message
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.
Printer Friendly | Permalink |  | Top
 
hendo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:43 PM
Response to Reply #4
12. I was about to point that out
before I saw your post.
Printer Friendly | Permalink |  | Top
 
RB TexLa Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:44 PM
Response to Reply #4
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.
Printer Friendly | Permalink |  | Top
 
Cleita Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:33 PM
Response to Original message
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.
Printer Friendly | Permalink |  | Top
 
napi21 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:33 PM
Response to Original message
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.
Printer Friendly | Permalink |  | Top
 
Cleita Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:37 PM
Response to Reply #6
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.
Printer Friendly | Permalink |  | Top
 
napi21 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:42 PM
Response to Reply #8
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.
Printer Friendly | Permalink |  | Top
 
OHdem10 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:34 PM
Response to Original message
7. Are you aware of the millions for whom SS is the only income
they have????
Printer Friendly | Permalink |  | Top
 
Skink Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:37 PM
Response to Original message
9. Social security is fine. Benefits are going up.
Edited on Mon Dec-08-08 02:37 PM by Skink
Printer Friendly | Permalink |  | Top
 
ashling Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:39 PM
Response to Original message
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:
Printer Friendly | Permalink |  | Top
 
suston96 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:46 PM
Response to Original message
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?
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Sun Dec 21st 2014, 01:41 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC