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Ahh, History in the making.
Be careful what you wish for, bellfountain. From my analysis, this bill will be much less likely than expected to stop housing price drops. In fact, in 12 months, it may actually make things much worse.
- !bank_owned!
- Contributions:454
assuming Bush signs it, when will it actually go into effect?
Drink your doomer kool-aid Roberto. This housing bill will halt foreclosures. Modify ARM loans to fixed rate mortgages. First time buyers will have credit towards their downpayment. $300 billion is a lot of freaking money! This bill will prop up prices that's for sure and soon you'll be hustling for a listing azrob!
- 2 Big 2 Fail
- Contributions:0
It will go into affect on October 1st.
- whitetower67
- Contributions:151
Any artificial (i.e., "government") attempt to stimulate the housing market will only delay the inevitable -- and cost taxpayers as well.
- 2 Big 2 Fail
- Contributions:0
That's what you think! HA HA!
Wrong. It will stabilize prices and soon will start climbing fast. Inventories will decline significantly as more and more first time buyers will enter the market due to $7500 credit towards their downpayment.
What a great day for Americans! Affordable housing for everyone! Everyone deserves the American dream of owning a house. Home ownership is a basic American right. Hip Hip Hooray! Three cheers to the venerable statemen!.
- 2 Big 2 Fail
- Contributions:0
I am going to make a prediction that, after Labor Day, there will be talk in Washington about a SECOND housing relief bill!
- Walters Consulting
- Contributions:1661
Time will only tell but I am sure there are few smart people in office that have played the senario tape all the way though and decided it was worth putting in place.
- 2 Big 2 Fail
- Contributions:0
The doomers will continue to spin the legislation that it will have no impact and make things worse.
And a second stimulus bill is coming after November! WOW WOW! This country is heading in the right direction! Let's just keep printing more money and keep the ship running. Those stupid 2 years old are going to be paying our bills in 30 years when their tax rate is 40%. Haha. Dumb kids.
While I understand your frustrations doomers with what appears to be a “bailout,” I believe that we must closely evaluate every proposal and consider the best path forward that will stabilize our nation’s faltering economy. The housing market is one a factor of our economy’s health.
- Alex07
- Contributions:64
Inventories will decline significantly as more and more first time buyers will enter the market due to $7500 credit towards their downpayment.
This credit is not reducing the over priced houses in the market. The problem is the affordablity of the price not the down payment or the 0% loan. In order for first time buyers to enter the market the price of houses needs to be adjusted back to 2002 price.
- sdepla
- Contributions:11
"This isn't going to be the catalyst for a better housing market," said Mark Zandi, chief economist at Moody's Economy.com. "It may staunch some of the downturn, but it's going to have a very modest positive impact."
http://ap.google.com/article/ALeqM5j4OGOcW55qjnVy6Ud5LqPpXaN-WAD9241NKG0
In
In reality, FHA is only asking if you have a stable job and making sure you can pay back the loan.
the 7500 is not a credit towards your downpayment, tard, its a tax credit when you file your next years taxes the following April. The disappearance of DPA may negatively effect demand even more than a follow on tax credit.
- whitetower67
- Contributions:151
Bella,
The problem (or, at least one of the many problems)with the housing market is that house prices have been and continue to be inflated -- prices need to steeply decline to eliminate the enormous inventory. This bailout (and it is a bailout because buyers get a tax credit) helps to keep house prices inflated.
- 2 Big 2 Fail
- Contributions:0
Whitetower, 3 hours ago:
"Any artificial (i.e., "government") attempt to stimulate the housing market will only delay the inevitable"
Whitetower, 1 hour ago:
"This bailout helps to keep house prices inflated."
Doomers always contradict themselves sooner or later...
The bailout will NOT keep prices inflated.
There is so much of an overglut of inventory that its not even being reported correctly.
Many houses are in foreclosure that arent even on the MLS. Many folks are trying to hawk em on FSBO and Zillow too.
There is far more inventory than we are being told.
The bailout is (imho) to unclutter the foreclosure backlog and get the wheels spinning again.
Anyone who thinks this bailout is going to 'prop up' inflated values doesnt understand it will take YEARS to beat back the inventory, so prices will find their natural bottom still.
Bottom line is that inflated values cannot be maintained without stated and no doc programs. Since those are virtually non existant now, the qualifying borrowers will set the price of the houses with real income.
On the up side, there is ONE provision in the new law that I like: National loan originator licensing for all Loan officers, no matter where they work, a mandatory test with a 75% pass rate, and a mandatory 20 hour pre-licensing class. Ahh, no more incompetent loan officers and vulture like type of business to homeborrowers.
- 2 Big 2 Fail
- Contributions:0
But Tom, won't the bail out keep prices higher by preventing more houses from going into foreclosure? The bill is supposed to aid 400,000 homeowners. So let's be pessimistic and say it only helps 250,000 homeowners. At the end of the day, that is 250,000 less foreclosures and 250,000 less houses on the market.
I guess Tom will need to pass the exam pretty soon otherwise he'll be working in retail banks as bank teller. LOL
- mbabe
- Contributions:130
Folks,
Is this bill going to be retroactive to now or not? In brief, anyone who bought now will get the credit or only those who buy post-Oct. 1?
- Player01
- Contributions:18
The wording of the bill (I read this section after the house passed it) states after April 9, 2008 for the tax credit. So if you're really lucky, you can buy a house with down payment assistance before October 1st and get the tax credit next year anyway.
- mbabe
- Contributions:130
Thanks, ok great! I;ve never gone for freebies but given everyone's getting something might as well I get something too! Yup closed on July 15th so I should be ok.
- Player01
- Contributions:18
It's for first time homebuyers only -- defined as not having owned a home in the last 3 years. I am closing in the next couple, and this extra loan from the government will come in handy -- it's an incredible thing to have if you didn't plan for it. I am not sure it would make the difference between buying a home and not buying a home if I knew about it ahead of time though -- there's just too many other factors.
Housing rescue bill heads to Bush for signature
Congress passed the most significant housing legislation in decades Saturday, offering help to struggling homeowners and seeking to stabilize a troubled housing market that has dragged down the economy.
President Bush will sign it quickly, the White House said, despite reservations over $3.9 billion in the bill that would aid neighborhoods devastated by the housing crisis buy and fix up foreclosed properties.
The bill, approved 72-13 in a rare weekend session in the Senate, would give the government power to throw a financial lifeline to the ailing mortgage companies Fannie Mae and Freddie Mac. They back or own $5 trillion in mortgages, or nearly half the nation's total. The rescue plan is intended to prevent the two pillars of the home loan market from failing and causing broader market turmoil, while strengthening oversight of their operations.
link for GWB to sign
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