this post was submitted on 01 Mar 2025
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[–] [email protected] 3 points 2 days ago (1 children)

That's a win win, as theyre probably getting a big cash payment when struggling, and the state bank then gets to relist the home.

I like your ideas, but where do they live once they get foreclosed on by the State?

[–] [email protected] 8 points 2 days ago* (last edited 2 days ago)

They use their profits from the house sale (which may be substantial depending on how long they've been there + market inflation), to rent somewhere.

That nest egg (which they've been paying into all this time) would give them breathing room and time to recover and get back on their feet to try again at a more stable point in thier lives.

It's a win win because the mortgage payer gets a lump sum, and space to reassess what went wrong. The state bank gets the unpaid percentage of the home's sale price, and then to sell the house again (under a new rent to buy mortgage arrangement).

P.S Part of how this works financially is that most of the money in an economy is created by loans issued from banks, those banks then buy Government Bonds periodically... A state bank would be another entity doing much the same thing, just with a specific purpose in mind.