Subprime Solution

mudwhistle · 12-21-2007, 07:05 AM

Let people borrow against their 401(k) or other tax-sheltered savings plans penalty-free for two years. As long as they use the money to pay their mortgage or make a down payment on the house.

This increases capital available to buy a home and offsets the supply and demand imbalance that currently exists. It allows the lenders to get paid what they are owed without having to foreclose. Borrowers get to keep their homes without going further into debt or paying penalties. And it doesn't cots the government or taxpayers anythign.

zimmy61 · 12-21-2007, 07:11 AM

Interesting. We've had something similar in Canada for years called the RRSP (Registered Retirement Savings Plan) Home Loan Program. You can withdraw up to a set limit from your retirement plan tax and interest free as long as it's paid back withing a specified number of years.

EvilMonkey · 12-21-2007, 07:59 AM

Interesting proposal, I'm not a big fan of touching retirement money but if it's an option that would make a break a persons home then I think this is probably a good idea.

Question is though, how many of those who have defaulted really have a retirement plan? I am sure some do but I would think if they were that well off they would be able to afford to keep their home.

Still, good idea here, mud you've appealed to my newly changed Independent side.

doctordog · 12-21-2007, 01:25 PM

I think that is a great idea Mr. Mud as I am also against a total Goverment Bailout. I used to blow money and not even realize how much I was pissing away each month. I started listening and watching Dave Ramsey and in 2 more years everything we own is paid for and we are in our mid 40's. I was in line today behind 3 people and everyone fo them put $100 to $400 on a credit card and I wondered how many were about to lose their home if any.

eagleclaw · 12-21-2007, 01:30 PM

I agree with mud on this one. No government bailout and if you have money available in a retirement plan at least make it availablefor purposes such as this. The fund managers might not like it but too bad.

12-21-2007, 07:05 AM	#1 (permalink)
mudwhistle Banned Join Date: Nov 2007 Location: Tennessee Posts: 949 Thanks: 178 Thanked 34 Times in 20 Posts	Subprime Solution Let people borrow against their 401(k) or other tax-sheltered savings plans penalty-free for two years. As long as they use the money to pay their mortgage or make a down payment on the house. This increases capital available to buy a home and offsets the supply and demand imbalance that currently exists. It allows the lenders to get paid what they are owed without having to foreclose. Borrowers get to keep their homes without going further into debt or paying penalties. And it doesn't cots the government or taxpayers anythign.
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12-21-2007, 07:11 AM	#2 (permalink)
zimmy61 Senior Member Join Date: Aug 2007 Posts: 1,840 Thanks: 2 Thanked 7 Times in 5 Posts	Interesting. We've had something similar in Canada for years called the RRSP (Registered Retirement Savings Plan) Home Loan Program. You can withdraw up to a set limit from your retirement plan tax and interest free as long as it's paid back withing a specified number of years. __________________ http://i164.photobucket.com/albums/u...icon_bunny.gif Last edited by zimmy61; 12-21-2007 at 07:14 AM.
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12-21-2007, 07:59 AM	#3 (permalink)
EvilMonkey Administrator Join Date: Aug 2007 Location: Oregon Posts: 6,104 Blog Entries: 1 Thanks: 66 Thanked 420 Times in 257 Posts	Interesting proposal, I'm not a big fan of touching retirement money but if it's an option that would make a break a persons home then I think this is probably a good idea. Question is though, how many of those who have defaulted really have a retirement plan? I am sure some do but I would think if they were that well off they would be able to afford to keep their home. Still, good idea here, mud you've appealed to my newly changed Independent side. __________________ Barack Obama - Get the facts at BarackObamaWatch.com
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12-21-2007, 01:25 PM	#4 (permalink)
doctordog Senior Member Join Date: Dec 2007 Posts: 107 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts	I think that is a great idea Mr. Mud as I am also against a total Goverment Bailout. I used to blow money and not even realize how much I was pissing away each month. I started listening and watching Dave Ramsey and in 2 more years everything we own is paid for and we are in our mid 40's. I was in line today behind 3 people and everyone fo them put $100 to $400 on a credit card and I wondered how many were about to lose their home if any.
	Top

12-21-2007, 01:30 PM	#5 (permalink)
eagleclaw LIAR/TRUTHER Join Date: Nov 2007 Posts: 582 Thanks: 20 Thanked 25 Times in 21 Posts	I agree with mud on this one. No government bailout and if you have money available in a retirement plan at least make it availablefor purposes such as this. The fund managers might not like it but too bad. __________________ All the time, always
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