6 Responses for "do you think if they stopped property taxes and real-state taxes it would stop the foreclosure problems?"

1. dms47949 February 27th, 2008 at 6:46 am 1

   No, what would stop the problem though go back to the standard 30 year fixer mortgage and add something new- no interest! That would stop 90% of all foreclosures.
   References :

2. bostonianinmo February 27th, 2008 at 6:47 am 2

   No, it would not make much difference in most of the country. My property taxes are barely = to one month's mortgage payment.

   How would you deal with bankrupting local governments and school districts in the interim? They don't run on air, you know!
   References :

3. becca9892003 February 27th, 2008 at 6:52 am 3

   it may but it would casue a ton of other problems..like shortage with the counties budgets which supply you with your police, fire depts, schools and local programs…..grown adults signed the papers for these mortgages and as grown adults they need to refi or get a second job to hold up their end of the commitment..the adjustable rate mortgages were designed to be given to people with less then good credit at a fixed rate with a 2 year window to work on their credit and to get their act together so when the adjustment period was up they would be able to refinance into a fixed mortgage…but these people forgot that part and continued to rack up debt, not pay bills and not improve their credit scores..i know some people may have been talked into these without understanding them but the majority of people are grown ups who should have done their homework before they signed their papers and fully understood the responsibitly they were taking on….but like little kids all they hear was yes…and forgot what they had to do in the years to come to get out of it..
   References :

4. quizzard123 February 27th, 2008 at 8:22 am 4

   Bankrupt cities aren't going to be very helpful, don't you think? Are you giving me (I pay my mortgage, thanks very much) the same benefit you give the people who couldn't do simple math? Because if you are, the cities and counties will have virtually zero income. Now they all go bankrupt, lay off all their employees, we've got riots in the streets, dogs cohabitating with cats…… (sorry, got a little carried away there;)

   Seriously, it would make almost no difference to the people who screwed up, and would cause massive disruption. We need to accept the consequences of this debacle, clear it out, and move on.
   References :

5. lanek February 27th, 2008 at 8:46 am 5

   no….one of the biggest problems is people are buying more than they can afford…lenders are lending them more than they can afford…last nite on tv they talked to a woman how kept up her house payment for 7 years…then her daughter went to college….and something happened….doesn't a home take precidence over a college…they can get student loans and work…my 6 kids did…
   References :

6. Niaz Ahmad Khan February 27th, 2008 at 10:43 am 6

   Life without taxes( all types) would be a haven for every body but then how the money will be generated to run the country. In the following passage I will explain how this paradise can be achieved and not only the taxes but all kinds of duties will also be removed resulting in 50 % reduction in cost of living removal of poverty and interest based economy. The state will earn whole year of budget in just few days and many times more by the end of the year.The governament will be the lender to banks and all other instutions requiring loans without interest but on profit and loss sharing basis and the borrorer will not need any collaterals. This new system will also create massive employment at no cost to any body. But need at least Two thousnd words to explain the system as it is not possiple to address all these problems in the short space.The basic idea is that the state will float interest free bonds for a llimmted period of time one month. Example One dollar will buy 5 bonds if if one can spend hundred thousand dollars and or avail one million duty free option for the same amount. These bonds will be used to perchase goods or services under state control .A bill of 100 dollars can be paid by 200 bonds this will give net saving of 60%. At least 100 million will invest in this option and the state will get 10 trillions in matter of few days with a loss of yealy budget of 6 trillions In the next month the rate of bonds will 20% less and same will be the duty free option and if one is sure of making 100 % profit by only investing one hundred thousand with in a month then at least 50 % of US population will join this club even if they have to take a loan at 20 % interest as this loan will be returned with in one month as the investor will buy whole year quota from the agent by sharing the commission which the agent will get the investor will repeatedly sell thes bonds at the same rate of 5 without the condition of the amount involved .In this way even the poorest person will also get the same rate but investor will earn the share of commission from the agent.This will open another flood gate of money for the state and if one adds black money used for smugling this source alone will give the state another 100 trillion .These are not debts and hence no interest is involed as government is selling a commdity which is helping every body by reducing the cost of living by 50 % .20 million unemployed will sell these bonds with a fixed yearly quota at 10% commission and no other benefit. Within a month governament will declare a tax and interest free country becase of 100 times mre money is availabe to state without interest. Now the state will offer all major businesses and banks interest free loans .The state will invest 80 % and the private source 20% after checking the fessibility by the state bank The bank will introduce investor and will deposit 20% in the bank and the bank will over see the running of the business . The running expences will be given from the 20% deposit by the investor . The state will share 40 %and the bank and investor will take rest of 60% of profit The state will provide below cost every thing under its control to its business partener and will act as asleeping partener and there will be no tax or income tax of any kind .State will share profit in every big business and the amount collected this way will be unimaginable. Now state will offer loans to new home owners on the basis of rent which will be much less than the interest rate and monthly mortgage is paid on orginal loan along with rent.In this way there will be no foreclosure as the governament is the lender with immence funds available through the sources already described. In private sector these bonds will be used but in a limmited amount of !5% and rest it will be cash. So the bonds will only replace the dollar in the government sector . Example against a registration fee of hundred thousand one is allowed to sell its product through a private agency sellected on the basis of lowest bid to employ agents for selling the bonds but with the condion of surrendering 15 % bonds at each sale and the state will give cheap bonds through out the year equal to the amount sold through this agency. The price of 15 bonds will be 3 dollars hence state gets 3% of every thing sold and if total sale in USA is 100 trillion a day then government will get 3 trllion every day and will replace gst and is called the true gold mine . This will stop recession ,inflation and will abolish all kinds of taxes and hece will remove poverty and all its ill effects.
   References :
   An abstract from Islamic Economic Revolution Of The Century