Bush signs housing bill to provide mortgage relief

[99MustangGT]

http://news.yahoo.com/s/ap/20080730/ap_on_go_pr_wh/housing_bill

[Mr Majestyk]

The $7500 tax credit is a gem. Buy a house at today's deflated prices and get the tax credit; forget the rest of us who have been paying their existing mortgages on time prior to this new handout.

[Vertnut]

The $7500 tax credit is a gem. Buy a house at today's deflated prices and get the tax credit; forget the rest of us who have been paying their existing mortgages on time prior to this new handout.
All this is going to do, is promote more of the same. Get folks into houses they have no business being in. The hardworking, responsible folks are taking a screwing...plain and simple.

[Andrew]

The $7500 tax credit is a gem. Buy a house at today's deflated prices and get the tax credit; forget the rest of us who have been paying their existing mortgages on time prior to this new handout.

That "$7500" is bullshit.

It's a 15 year interest free loan on 10% of the purchase price up to $7500.

What is the handout for a $200k house? $200?

[Mr Majestyk]

That "$7500" is bullshit.

It's a 15 year interest free loan on 10% of the purchase price up to $7500.

What is the handout for a $200k house? $200?

Good correction, and spot on except the handout. I would take an interest free loan any day on 10% of the purchase price.

[AL P]

If you can afford a $200K house then you are rich in this country. Call your butler to bring you a tissue, Mr. Rockefeller!!!

[mind]

i don't see how it's going to help.
freddie and fannie get some $.
mortgage brokers get to do some more loans.

the $180m towards mortgage counseling could be good if they develope a good program. they should do that with every first time home buyer before they can get a mortgage.

[forever_frost]

This is really starting to piss me off. When I bought my house 2 years ago I didn't have a net saying "Oh, if you don't pay it's okay, the government will bail you out." If you can't afford it, stay your ass in an apartment.

[SVT Lurch]

All this is going to do, is promote more of the same. Get folks into houses they have no business being in.
People that have no business in a house are NOT getting a loan right now without falsifying a LOT of paperwork.

[cannonball996]

I dont get this "180 million for counceling" most of these people in the mid west lost their jobs. if you dont have a job you cant be expected to meet your payments. 180 million to tell people with out any money, to pay money, whats the point?

[Vertnut]

People that have no business in a house are NOT getting a loan right now without falsifying a LOT of paperwork.
I'm speaking of the folks that are already in houses that they have no business being in. They get assistance for the jam they're in, and move to the next one...
I realize NEW loans are being scrutinized more than ever...it's the existing loans I'm speaking of.

[Slowhand]

Fucking bullshit. This is one of the most aggrevating things our government has done in a long time, IMO.

[Denny]

How Liberal of him...

[AdamLX]

I'm speaking of the folks that are already in houses that they have no business being in. They get assistance for the jam they're in, and move to the next one...
I realize NEW loans are being scrutinized more than ever...it's the existing loans I'm speaking of.

That's the biggest flaw that I see. They are going to get bailed out and do it all over again.

They may get into a house that's more reasonable, but that won't stop them from getting into CC debt again and buying cars they can't afford.

[66Deuce]

Bandaid on a bullet wound.

[Gripenfelter]

http://research.stlouisfed.org/fred2/data/BORROW_Max_630_378.png

[Sean88gt]

Make it stop!

This means that while the feds are bailing out the shit that can't pay, us that still are going to get raped on rates. Thanks Washington!

[HOOCBB]

The BIGGEST disappointment in this entire bill is the abolishment of the downpayment assistance programs as of 10/1/08. (sect 2113)

http://capwiz.com/nehemia/issues/alert/?alertid=11709431

Housing Bill Shuts Down Non-Profit Downpayment Assistance Programs on October 1, 2008.
Take Action Today to Save Downpayment Assistance!


Nehemiah Corporation of America, a national non-profit organization, has helped over 300,000 families who would have otherwise been locked out of homeownership due to lack of downpayment funds.

President Bush signed H.R. 3221, Housing and Economic Recovery Act of 2008, into law. The bill contains a provision (SEC. 2113) that forbids FHA from insuring mortgages in which the downpayment comes directly or indirectly from an interested third party (such as the seller), beginning October 1, 2008. As of this date, the minimum downpayment will be increased from 3% to 3.5%.

The consequences will be devastating! By FHA's own estimates, DPA comprises nearly 40% of FHA's volume. This means more than 300,000 working class families will be locked out of homeownership in the next year alone. Communities across America will take the brunt of the $10 billion a month in lost real estate sales, not to mention the indirect impact on the real estate, mortgage and building sectors that will be forced to shed tens of thousands of jobs due to this dangerous legislation.

This is disappointing to me because it makes it more difficult for my company to sell the houses that we have in inventory. We focus on getting the lower income families into houses that they can actually afford to purchase and not stretch their finances too thin. My company is already hurting from the current buyer's market, add this on top and it could severely cripple our business.