Economist Farid Khavari: ‘We can stop foreclosures, end the housing crisis, and save Florida’s economy’
Darcy G. Richardson • Uncovered Politics • October 26, 2010
…Khavari’s proposal for a publicly-owned bank has gained national attention, and gubernatorial candidates in seven other states, including Lansing Mayor Virg Bernero, the Democratic nominee in Michigan, have adopted the concept. Khavari’s state bank is modeled after the Bank of North Dakota, the only state-owned bank in the nation.
“Our bank can buy the foreclosed homes at wholesale prices. We can sell them at six percent more than we pay, to cover real estate sales costs. Our bank can provide 2% fixed rate mortgages for 15 years,” said Khavari. “In many cases, the owners would be able to stay in their homes, or buy another one at a price and monthly payment they can afford. The state can earn billions of dollars by doing this, at no cost to taxpayers,” Khavari said, adding that the additional revenue could be used for property tax reductions throughout the state.
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