Comments on: New HUD Push To End Charitable Downpayment Plans

By: Erin

Erin — Wed, 16 Jul 2008 20:30:43 +0000

Even with thte infalated amounts to cover I have to agree that this is not really what has been causing the crisis. I have a couple of friends who lost their houses not because of the infalted rate, but the variable rates. Some people just take the hit with the inflate because this is the only way for them to get the chance to own a home. It does seem a little greedy, but it’s the price the lenders and such are requiring to finance some of the people who would not generally be able to get a home with a traditional loan. Just like with added high interest with a car loan if you have terrible credit you have to suffer so that’s the basis here that there is the add on to the price of your house.

By: August

August — Thu, 05 Jun 2008 13:50:33 +0000

I live in Texas, we do not have any rights,Texas is a private state. Hidden Laws which make consumers pay heavly. But…It’s a (I love Jesus State). But the Laws are written so we can and will be deceived, In more ways than one. If you’re going to change anything, change the way the banks do things. First start with the fair disclourse. Make sure the banks, home loans car dealerships, tell us how they received the interest rate. Every little detail, needs to be explained.
If you think,you have not been had. Go to the Texas Statues, Read Law 348.301. (it’s called the midnight law. 97% of Texasan does not know about this law. Our President Bush signed this law, before he went into the White House

By: Lisa

Lisa — Thu, 05 Jun 2008 13:41:15 +0000

On top of the 3% and the 499.00 is interest. Hud/Government made a deal with the devil. We tried to get answers from HUD and FHA before we worked on buying a home. HUD/FHA does not answers questions. Remember when you vote for the senators and congress, president. You put Satan in the White House and on Capital Hill. Learn your laws in the your state. State and Federal do not work together. Federal does not trumiph state law, if it is in the Banking Industry.

By: Mike

Mike — Mon, 26 Nov 2007 21:45:26 +0000

While the concern about “over inflating” home prices to cover this gift is a valid concern, you seem to be forgetting that most of those who default on the loans are doing so 2 or 3 years into their mortgage–NOT immediately after closing!! Even if the price of the home was inflated 3% to cover this gift amount by the time this mortgage defaulting occurs the house value has surely increased well beyond that small amount over 2 or 3 years. In other words, worst case these capped amounts were absorbed a long time ago and have no effect on the current mortgagee’s status. Also, as this is a gift and does not have to be repaid by the buyer it does NOT figure into what they owe the banks.

This recent housing crisis is NOT all about sub-prime by the way. There are plenty of average homeowners who got greedy and went into loans that were way over their heads. Quite frankly, they were irresponsibly taking out mortgages they KNEW they could not afford. Who’s to blame for that? How about the person taking out the loan in the first place.

C’mon people, let’s not blame everyone else for our own stupidity. Many of those sinking now should look in the mirror and truly ask were they duped/scammed OR did they have dollar signs in their eyes and did not use due diligence when signing contracts and loan papers–no one forced them do so and they could have easily taken out calculator and done the worst case scenario math.

I hardly think down payment assistance groups are to blame, even mildly, for the current housing problems. DPA groups help people who can otherwise afford mortgage payments get past the closing table where we all know the taxes and other fess can cripple potential homebuyers. Helping with those initial closing costs simply gets them past this hurdle. It does NOT, however, guarantee they won’t lose the home years later due to other circumstances. NO ONE can guarantee this for ANY buyer except for those who can afford to NOT take out mortgages. Job loss, illness, relocation, etc. can wreak havoc…this DPA issue was barely a mole-hill and made to be Mount Everest and a smoke screen if you ask me. How about asking HUD what their motives are–they are doing this out of the goodness of their governmental hearts–wake up! It’s all about the money and a govt agency is no different…even government entities must show value or risk being shut down too.

Think about it…

Peace!

By: RC

RC — Thu, 18 Oct 2007 22:23:23 +0000

QUIT WHINING AND GET OFF YOUR PITY POT, NANCY

By: Peter G. Miller

Peter G. Miller — Tue, 16 Oct 2007 16:04:34 +0000

Tim. Thanks for your posting. You raise a good point and I have no doubt that what you see happens widely.

That said, it hardly seems fair for HUD to worry about third-party downpayment programs when FHA regulations allow owners to offer as much as a 6-percent “seller contribution.” Does anyone really believe that home prices are not inflated to account for seller contributions?

By: Tim D

Tim D — Tue, 16 Oct 2007 14:18:19 +0000

I am an appraiser and I have seen many cases where these downpayment assistance programs have caused exactly what HUD is worried about, the sales price is inflated to cover the 3% plus $499 fee. The appraiser is then pressured by the lender and real estate agents involved in the transaction to “hit the value”. You have to remember that the lender chooses the appraiser and many unethical lenders stop using appraisers who do not “hit the value”.