Is it possible?

[Haveaniceday]

It came to my attention that it would be possible to house everyone who needs a home in America. All the homeless, all the low income, everyone could live in decent, crime free housing in the form of condominiums.

In the 60s, they had the same idea and built the projects. However, we could change the rules. Recreate these condos and make them modern and then give away free housing for everyone who wants it in exchange for a commitment. We would require the owner guard the condo where we live against property crime. We would require they check up on the elderly and disabled and go shopping for them. We would require they learn to fix and then fix simple plumbing and electrical problems.. We would require they do bi-annual painting of all interiors and exteriors. In exchange, all housing would be free.

We give prisoners free housing don't we?

The cost to build these condos is minimal, maybe $7,000 per unit if done en-mass. Drywall is dirt CHEAP and that is 90 percent of the material in a house or condo!!! How do I know? I am a licensed property adjuster and deal with this stuff every day.

The owner would be responsible for insurance, condo fee and local property taxes. Since the condo is worth $7,000 these fees should be minimal and could be paid for by a part time job working just a few hours a week. Those who couldn't work could pay due to disability could pay with their government subsidies. This would also pay for regular security guards (bouncers) of each condo to take care of anyone who didn't belong.


What happens if they do not abide by the rules? There would be a condo board and they would get kicked out. It would definitely be in their best interest to cooperate. We can do this.

 

[Bottesini]

So said Karl Marx and Thomas More.

 

[somedeafdudefromPNW]

The Danes allow those that can't afford a house to default and keep their homes. Their rationale is that it's better for people to buy consumer goods than to keep chasing old debts.

Just something I learned from someone who was from Greenland.

 

[Reba]

The Danes allow those that can't afford a house to default and keep their homes. Their rationale is that it's better for people to buy consumer goods than to keep chasing old debts.

Just something I learned from someone who was from Greenland.

So what would be the motivation for anyone to pay a mortgage?

 

[Bottesini]

So what would be the motivation for anyone to pay a mortgage?

I wondered that too! Also why hasn't everyone just move to Denmark.

I could have a lot of fun with my mortgage money.

 

[Bottesini]

I know this is Wiki, but it does give a pretty concise explanation. It's very hard to get a mortgage in Denmark.

Danish mortgage market
From Wikipedia, the free encyclopedia
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The Danish mortgage market has proved very effective in providing borrowers with flexible and transparent loans on conditions close to the funding conditions of capital market players. Simultaneously, the covered mortgage bonds[1] transfer market risk from the issuing mortgage bank to bond investors. Lastly, strict property appraisal rules, credit risk management by the mortgage banks, and tight regulations including the so-called 'balance principle', have also historically shielded mortgage bonds from default risk.[2]

In Denmark, the mortgage banks are the only financial institutions allowed to grant loans against mortgage on real property by issuing covered mortgage bonds (Realkreditobligationer). The scope of activities allowed to mortgage banks is limited to the origination and servicing of mortgage loans, their funding, exclusively through the issuance of mortgage bonds, and activities deemed accessory. As of 2007, there are eight mortgage banks active in the Danish mortgage market, some affiliated with commercial banks

Danish mortgage market - Wikipedia, the free encyclopedia

 

[Bottesini]

Here is what happens. To stop paying a mortgage in Denmark, you have to buy an equivalent number of the housing bonds.

To reconstruct our mortgage system on a sounder basis, we ought to look to the Danish model, which has withstood many tests since it was brought into existence after the great fire of Copenhagen in 1795. It remains the best performing in Europe during the current crisis. First, it is an open system in which all mortgage originators can participate on equal terms as long as they meet the rigorous regulatory requirements. There are no GSEs enjoying a quasimonopolistic position.

Second, mortgage originators are required to retain credit risk and to perform the servicing functions, thereby properly aligning the incentives. Third, the mortgage is funded by the issuance of standardized bonds, creating a large and liquid market. Indeed, the spread on Danish mortgage bonds is similar to the option-adjusted spread on bonds issued by the GSEs, although they carry no implicit government guarantees.

Finally, the asymmetric nature of American mortgages is replaced by what the Danes call the Principle of Balance. Every mortgage is instantly converted into a security of the same amount and the two remain interchangeable at all times. Homeowners can retire mortgages not only by paying them off, but also by buying an equivalent face amount of bonds at market price. Because the value of homes and the associated mortgage bonds tend to move in the same direction, homeowners should not end up with negative equity in their homes. To state it more clearly, as home prices decline, the amount that a homeowner must spend to retire his mortgage decreases because he can buy the bonds at lower prices.

Denmark Offers a Model Mortgage Market - WSJ.com