What you can do for Countrywide

The world is swimming in ideas on how to ease the pain of the housing bust. The Senate is considering a $15 billion relief package that would fund purchases of foreclosed properties and help borrowers refinance troubled mortgages. Consumer advocates want to allow judges to reduce residential mortgage debts, a measure congressional Republicans have opposed.

But while those ideas get tossed about in Washington, Mark Gimein offers up an idea at slate.com that lets consumers take immediate action to ease the glut of unwanted houses: You can buy a foreclosed property direct from Countrywide (CFC).

Buying from Angelo Mozilo’s crew may not be your first choice. You may think Countrywide has gotten enough help already, what with its massive executive payouts and its agreement to sell itself of Bank of America (BAC). You may have noted with some alarm that the Justice Department is now probing the company’s lending practices.

Indeed, you may wonder about the possible conflicts of interest involved in a purchase from Countrywide’s real estate portfolio. Gimein notes that the company demands that forclosed-house buyers who don’t pay in cash must prequalify for a mortgage with a Countrywide loan office just to make a bid, whether or not they take the loan.

But, Gimein points out, taking a loan from Countrywide means getting a free appraisal, too - which makes for a very attractive proposition, at least for the company. “Take that offer and that means you’ll be buying a house from Countrywide, financed by Countrywide, on the basis of an appraisal from Countrywide,” he writes. “You can file that under Department of Foxes and Henhouses.”