DISQUS

Blown Mortgage: Celebrate our independence with the ‘08 housing bailout bill

  • Carl Pruitt · 1 year ago
    The only reason for raising the limits on FHA is to accommodate those areas where many buyers used low or no doc loans to buy property. Those people won't qualify for the bailout programs either and values in those areas are likely to keep right on falling. Falling values are even more closely associated with defaults than the down payment programs FHA is trying so hard to get rid of. This could be the nail in the coffin for FHA and maybe even FNMA and FHLMC! What a price to pay for a few votes from those who don't know any better.
  • morganb · 1 year ago
    I agree Carl - we're putting our GSEs and federal mortgage program in harm's
    way here.
  • Don · 1 year ago
    I'm so ticked!! Morgan, put this under the "Why I hate my industry" category. We really needed this correction. I'm still hoping Bush will veto it or negotiations between the House and the Senate will break down, but I'm not holding my breath.

    This is a total disgrace.
  • morganb · 1 year ago
    I agree Don - why i hate my elected officials and their pandering (new
    category) hope you are well!
  • Mr. R · 1 year ago
    Do you know for the "tax credit for first time homebuyers for $8k or 10%", does this apply only to low income people? Do you know will it be effective for purchases in 2008? Or only after it is passed into law?
  • morganb · 1 year ago
    From what I have read it is for all first time homebuyers who are buying an
    unoccupied home as a primary residence. But that is only from the article I
    read. I believe it would only apply after the law was passed - again, just
    a guess on that one.
  • Michael · 1 year ago
    This is bad news folks. This bill is getting pushed through in the face of mass constituent angst and concern. The time to write, call in etc. is now. We can't blame ourselves if we let Congress act yet again against the will of the people. Check this site out:

    http://www.capwiz.com/freedomworks/issues/alert...
  • florida homeowner · 1 year ago
    Do more research.
    That bailout bill is far more lucrative to homebuilders.
    Consider:
    The bill includes a provision that extends the period that a firm can deduct 2008 and 2009 losses against profits from two years to four years. That means homebuilders can take their losses and go back in time to save hundreds of millions of dollars.
    You call that capitalism?
    Hell no.
    If homebuilders can get a bailout, why can't homeowners.
  • morganb · 1 year ago
    The bottom line is that there should be no bailout. I also agree
    however that it should not be capitalism for the poor and socialism
    for the rich. I've written plenty about that before.
  • Donald · 1 year ago
    Another interesting part of this bill is the definition of first time buyer. I just read an article that describes what a first time buyer is according to HUD. In it I found you can be considered a first time home buyer even if you have owned a home in the past. It just has to have been three years prior to closing. You can also own rental properties and as long as you haven't used them as a primary resident, you still qualify as a first timer. Interesting post, I can't wait to see what happens with the bill.
  • jody · 1 year ago
    That just doesn't seem right. I mean it stimulates the economy, but the first time buyer programs are supposed to help people who are new in the market. Not too sure if I like the idea.