After all, it is the politicians that determine if your home is for sale or not. And the more political you are, the more chances you have of being asked. This is another example of how the political process in America may be more about power than about justice.
The process by which politicians determine whether or not your home is for sale or not is also a little weird. First of all, it’s not like the government could force you to sell your home if you want to. But politicians also have the power to make sure that your home is not for sale. They can veto any offer from a buyer or seller. And it’s not like the law that prevents them from making these decisions could be repealed.
The law that prevents them from making these decisions is called the Mortgage-Loss Prevention Act, or M-LPA, which is a federal law that’s been around since 2004 that was designed to protect homebuyers from the kind of predatory practices that have been popularized by the real-estate market. In short, its about preventing people from buying homes that they can’t afford to keep, and it also prevents people from selling their homes for a price below what they can afford.
If you have $250K in mortgage debt, you’ve got the perfect target for this law. If you don’t have that, you’re also at risk of losing your home to a mortgage company that won’t let you stay in your home and would rather take that money and use it to purchase another property that they can get in on, or let you go with a foreclosure.
The main problem is that it’s almost impossible to prove that people in the state you’re in are trying to prevent you from buying a home they can’t afford. It’s probably more likely that the people trying to stop you from buying a home are simply trying to stop you from buying a home that they can’t afford.
One of the few ways that home ownership is possible is the “recovery” loan that you get from a bank for buying your house. These loans can be the equivalent of a mortgage in some cases. But if you go to a mortgage broker, you’ll see that a recovery loan is more like a loan, not a mortgage in most cases, but it’s still there for the same reason.
Yes, banks love these loans. As a result you can get a loan that looks like a mortgage, but it isn’t, and the bank won’t stop you from doing exactly what you want to do. That is, they won’t stop you from buying a house, but they sure as heck won’t stop you from buying a house that they can’t afford.
Thats what happened with the “homeowners will not be allowed to sell their home until it is owned by someone else” clause that was put into the bill to reform the housing crash. If you are planning on buying a home, you are allowed to buy one without the owner being allowed to sell it. In other words, if you buy a home that is owned by a bank, you can buy it for $1.2 million.
This isnt the first time a bill has gone through that has allowed for bank owned homes to be sold without the owner being allowed to sell it. In fact, its happened before.
In the late 80’s, the state of Michigan gave homeowners a right to sell their home for at least one year before they got to keep it. The idea was that if you sold the home within a year, it would help the bank. Of course this was never fully implemented and I’m sure it is still up in the air.