Tuesday, April 27, 2010
Home Equity depreciation legislation I would like to see passed.
I would like to see home equity legislation that creates a credit for home equity losses of greater than 10% retroactive to the beginning of 2008 and also does not allow a home to be foreclosed upon if it still has homeowner equity in it.
The Home Equity Depreciation Act of 2010 (my name for something that does not yet exist) would give a "credit" to homeowners who experienced a home equity loss of greater than 10% since 2008. This Home Equity Depreciation Act of 2010 can be applied towards paying down credit card debt. However, whatever home equity "credit" that is used to pay off credit card debt also results in a lowering of the homeowners overall credit card line by that same amount, or greater, and that credit card line would be frozen at that level for 3 years.
Any remaining home equity depreciation could be kept in a governmental trust account for accessing by the homeowner in portions spread out over a few years time. Perhaps to help pay for their healthcare, or college education, or, even as a matching fund down payment on a home purchase.
I would also like the Home Equity Depreciation Act to make it illegal to foreclose on a home if it still has equity in it. The beauty of this is if the bank trys to claim that the home has no equity in it, they may be undervaluing the home excessively, which would mean the home owner is entitled to a home equity depreciation credit. Either way, the homeowner is protected from unscrupulous banking practices that appear to be occurring on a daily basis.
If the home still has equity in it, than it should be applied to the monthly payment until it runs out, or have it time to run out by the time the homeowner has to leave, but not before.