{"id":194452,"date":"2008-09-21T11:36:00","date_gmt":"2008-09-21T16:36:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/09\/21\/making-a-bad-situation-worse\/"},"modified":"2008-09-21T11:36:00","modified_gmt":"2008-09-21T16:36:00","slug":"making-a-bad-situation-worse","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/09\/21\/making-a-bad-situation-worse\/","title":{"rendered":"Making a Bad Situation Worse"},"content":{"rendered":"<p>Well, it appears that the American House fetish and the lobbying of predatory realtors is getting results, as <a href=\"http:\/\/whistleblower.ml-implode.com\/?p=145\">the House Financial Services Committee has approved the markup of H.R. 6694<\/a>, which re-institutes the insane downpayment assistance program, in which sellers make a payment to non-profits, plus a &#8220;service charge&#8221;, and the non profits &#8220;gift&#8221; this to a potential home buyer, so that they can qualify for a FHA loan.<\/p>\n<p>Typical scenario:  a home owner has a buyer who has no downpayment for a $100K house, so the home seller &#8220;donates&#8221; $6000 to to a &#8220;non-profit&#8221; group, which takes a $500 fee, and &#8220;gifts&#8221; the remainder to the home buyer, so the home buyer now buys the house at $106,000, which the FHA recognizes as 5% down, and so qualifies for a loan.<\/p>\n<p>Of course, the buyer has <span style=\"font-weight: bold;\">still<\/span><span> put no money down, and they <span style=\"font-weight: bold;\">owe<\/span> more on the mortgate, and the statistics show a <span style=\"font-weight: bold;\">much<\/span> higher default rate.<\/p>\n<p>It does not put people in houses.  It creates a default\/foreclosure timebomb.<br \/><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Well, it appears that the American House fetish and the lobbying of predatory realtors is getting results, as the House Financial Services Committee has approved the markup of H.R. 6694, which re-institutes the insane downpayment assistance program, in which sellers make a payment to non-profits, plus a &#8220;service charge&#8221;, and the non profits &#8220;gift&#8221; this &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[998,970,1020,1088],"tags":[],"class_list":["post-194452","post","type-post","status-publish","format-standard","hentry","category-congress","category-corruption","category-legislation","category-real-estate"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/194452"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=194452"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/194452\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=194452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=194452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=194452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}