I thought so too. If I remember correctly, Khan is a real estate developer of some sort. I don't know if I'd say it's an idea I'd want to see implemented, but pretty interesting.
Couple of potential problems: 1. Most of those illegals don't have money to put 20% down, do they? 2. Who's going to give a loan to someone who has no long-term credit history in the US?
I think that most banks wouldn't hesitate to give someone a loan if they have 20% to put down because the people getting the loan have a lot to lose and the bank instantly has equity if they default.
JuanValdez, I dabbled in some real estate development as a hobby, but sold my last place over two years ago. I have not and do not have any plans in this market. Major, Thats why i'm focusing on those wealthier international citizens that can put upwards of 20% to 50% down. If one is willing to do this, then people don't walk away. People walk away when they put nothing down and bought a home 20% higher than its current market value. I used the illegals statement that people are coming in anyway, why not allow those internationally with significant means to achieve citizenship in a manner that benefits a problem within our economy. The danger is the snowballing effect of foreclosures and excess inventory on current homeowners. The more prices decline, the more people are upside down on their homes and may potentially just walk away from their home instead of paying on an asset thats they overpaid for.
