In college, I learned about something called the “lean and slap“.
The lean and slap is one of the professors favorite tricks - or at least it seemed to be when I was part of the captive audience there. When performing the “lean and slap” trick, the professor presents a business case in a certain light and has you thinking that the right answer is *obvious*.
And the majority of the students go ahead and fall for it - and pick the apparently obvious answer as the solution to the complex business problem presented in the case.
And as they lean forward in their chairs, all excited that they finally have the right answer…
They get slapped with the answer that they never considered.
Who says college doesn’t prepare you for life?
Lean:
“Hey everybody, we are going to allow people to monetize their 8000 tax credit by allowing them to get a bridge loan!”
Slap:
“Uh, sorry… wait… uh… we will get back to you on that. We officially retract that mortgagee letter that we put out about it. Everything is on hold for now. We will get back to you when we feel like it.”
After I pick myself up off the floor after being slapped silly, I will be sure to give everyone an update.
Right now, all I see is stars and I vaguely hear the sound of birds chirping.
Last 5 posts in $8000 Tax Credit
- You Don't Have To Be A First Time Homeowner To Receive The Tax Credit - November 10th, 2009
- $8000 Tax Credit is Extended through April 30, 2010...and it's been Expanded! - November 6th, 2009
- The Tax Credit Landslide: Homebuyer Credit Extended through June 2010 - November 6th, 2009
- So, How's the Mortgage Market Today? - October 29th, 2009
- Don't want to wait for your $8000 tax credit? No problem. - October 29th, 2009
- Stumble it!
- Categories: $8000 Tax Credit
Comments
5 Comments so far
Tim Epps
Justin,
Brilliant & succinct presentation of this issue. The problem is that the NAR, NAHB, HSH Associates, many news outlets and many individual Realtors and mortgage professionals are still leaning in. Can they not feel the slap?
Tim
Justin McHood
@Tim,
Thanks for stopping by and commenting.
One of two possibilities come to mind:
1. Not everyone had college professors like mine who loved to slap you silly.
2. I am off base and have no idea what I am talking about.
Either of these things are completely possible!
Justin
Matt Carter
HUD continues to maintain it’s committed to following through on the promise Secretary of Housing Shaun Donovan made last week in a speech to members of the National Association of Realtors.
http://www.hud.gov/news/speeches/2009-05-12.cfm
They seem to have created a lot of confusion by first publishing, and then withdrawing the letter to mortgagees. A HUD spokesman told me today the letter was a draft that was posted “inadvertently.”
HUD is still working out the technical details and will publish a final letter “shortly,” he said.
Justin McHood
@Matt,
Thanks for the update!
We will all wait patiently to see what the final details are when they are released.
Justin
Matt Carter
It will be interesting to see if the tax credit bridge loan guidelines end up being more limited than what Secretary Donovan outlined last week.
Realtor Magazine notes that housing finance authorities in 10 states (see list) already offer tax credit bridge loans, and raises the possibility that the FHA guidelines might limit the practice to those states. But if that were the case, seems like there would be no need to issue a new mortgagee letter.