Concerning ownership, the Fed would 'hold the note' but the ownership remains yours. Your own the home but it is held up as collateral for the money borrowed to buy it.
Should you fail to repay according to the terms of your borrowing the money the holder of the note takes the collateral held up and becomes the owner.
That said....the Fed bought some homes. They would own them as they are buying the BAD assets (the foreclosures) that are supposedly clogging up the credit market. In short, yes, the Fed will be buying a big bunch of foreclosed homes in the form of 'mortgage backed securities'.
I heard a proposal I liked. Make those in foreclosure 'renters' until the properties can be sold. The party has an opportunity to remain in the home, the Fed (and by extension us) begins to see a return on investment on that 850 billion right away, the occupant doesn't get displaced, and the property becomes increased in value as an investment property as it already has a tenant. Ripe for those that DIDN'T mess up to make a buck or two.
If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; and may posterity forget that ye were our countrymen.
Last edited by Bruxley; October 7, 2008 at 07:37 PM.