Still Needing Help.......

Will this new bail out program help you the average citizen? Or was it design to continue bailing out the same banks and investors etc.etc.etc.  I was reading a piece about a gaping hole which remains a mystery in the bail out. Under the new bail out bill; it failed to implement any type of down payment assistant (DPA) for the first time home buyer or others who may want to purchase a home.  You would think if our government was genuinely concerned about all citizens, they would have come up with revised programs for qualified buyers.  In my opinion this bail out wasn’t designed for consumers, more or less it was about saving their buddies bank accounts, hedge funds, and certain political advancements. Many have no clue on the importance of real estate, it’s very vital to our economy.  No jobs, no real estate movement,  Inflation on the rise no real estate movement; and with all of the down payment assistant programs getting tossed like yesterdays trash, I’m afraid we are going to still witness a weak real estate market if incentives and/or assistance programs aren’t implemented back into the consumers main stream.  To clarify assistance programs so many won’t misinterpret this classification, these were programs designed by private companies to help with the purchase of a home.

 Before these programs disappeared Oct 1st of this year, programs such as the (GAP) Grant America Program, Acorn and Nehemiah  just to name a few;  were created to assist consumers with assistance with their down payment or closing cost if the consumer was short of funds; the granted amount was 3% of the loan amount.  These programs were not loans but rather gift funds with limited stipulations which were offered by private entities.  As we look closer, interest rates are rising rather quickly, as of today for a 30 year fix rate you are looking at 6.5% vs. a week ago rates were hovering around the 5.98% range.  Suggesting a hand out is not the language I’m trying to use, I’m merely suggesting bringing back the programs which worked well with FHA, so our first time home buyers and others can purchase homes to soften our inventory overload.

 Having the amount of homes just sitting there, is equivalent to having an aircraft grounded. Without that aircraft flying, carriers will not make money; it’s useless to the fleet if they can not get this craft back into active service. Let’s see what happens in the next couple of weeks, I wonder how long will it take for these politicians to realize something needs to be done about this and how urgently they need to address this sinking ship.  

 

 http://www.mortgagemag.com/news/2008/1001/