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3 Bumps

Housing Crisis, Part Two?!

Liberals like to blame Republicans and banks for the housing crisis that led to the bailouts and recession that started a few years ago. Conservatives give a lot of the blame to liberal efforts to get low income buyers into homes, which led to the creation of such things as sub-prime, no money down and interest-only loans.

Well, score another point for the conservative argument!

The government has started another program where people can get houses with a $1000 down payment. Letting people buy houses with 100% financing helped cause this mess in the first place! Couple that with a failing economy and you have the recipe for another disaster.

These new loans are for people who can't muster up the normal 3.5% down payment for FHA loans. As soon as the house value drops at all, there you go, another "underwater" mortgage.

Another example of what you get when you let someone that hadn't run a lemonade stand run the country!

 
LoriKeet

Asked by LoriKeet at 1:31 PM on Aug. 6, 2010 in Politics & Current Events

Level 45 (194,908 Credits)
This question is closed.
Answers (11)
  • That is because there is a thought we all deserve to own a home. We deserve an opportunity to try to own a home. That is all we are promised - the right to pursue happiness. We aren't guaranteed the right to achieve it. When we bought our first house in 1979, we had to prove we had not borrowed our down payment which had to be 20% of the value of the house. We had to put down $8,000 which for a couple who had been married 3 months was an enormous amount. We combined our savings and bought the house. The sacrifice made the house seem like a prize won. There was a satisfaction knowing we had been able to find a house and buy it on our own. Getting it all for free (basically) without any work on your part makes it more of an entitlement than an reward for hard work. This will fail just like the other.

    jesse123456

    Answer by jesse123456 at 1:44 PM on Aug. 6, 2010

  • Yup, the same guys, Barney Franks, and Chris Dodd that got us into the mess in the first place, are the ones that wrote this new bill to get us into a bigger mess. People that keep blaming Bush don't realise that the democrats have controlled the house and senate for 4 years now.  

    Natesmom507

    Answer by Natesmom507 at 2:30 PM on Aug. 6, 2010

  • People who don't learn from history are bound to repeat.

    This is crazy.
    Carpy

    Answer by Carpy at 3:38 PM on Aug. 6, 2010

  • Hard to believe this is happening when there is another wave of foreclosures/short sales coming up for those who didn't qualify for the "Making Home Affordable" program. The banks just get richer. Why not concentrate on keeping people in their existing homes?
    tasches

    Answer by tasches at 2:42 PM on Aug. 6, 2010

  • Owning a home is expensive beyond just the mortgage. Maintenance is costly. If you can't afford the mortgage adding in insurance and maintenance will only make matters worse. It's another policy that on the surface seems to help people but only succeeds in keeping people down.
    sopranomommy

    Answer by sopranomommy at 5:28 PM on Aug. 6, 2010

  • OMG. Seriously?

    I just bought a house. I'm not comfortable with the purchase, but it was a family members house and he is holding the mortgage for us.

    House ownership is a big effing deal. It's not even just about money it's about responsibility. You have to be responsible enough to maintain and be able to pay for repairs, etc.

    Why don't people understand that sometimes it's a wiser decision for them to rent? It's a perfectly legitimate option. How long before this new bubble bursts now?
    lovinangels

    Answer by lovinangels at 3:00 PM on Aug. 6, 2010

  • VA loans may not require a down payment, but they do have different parameters and stricter qualifications.

    Contrary to what some believe, owning a house is not a right is is an EARNED priviledge.

    If there is nothing to work toward, what is the point of working?
    yourspecialkid

    Answer by yourspecialkid at 3:27 PM on Aug. 6, 2010

  • LOL Lori, I'll give you this one. As soon as I posted that clicky after the paragraph that no one was going to read it.

    I almost blew a gasket when I read that. That is the very reason we have this housing crisis we have now. November can't get here soon enough.
    itsmesteph11

    Answer by itsmesteph11 at 5:08 PM on Aug. 6, 2010

  • LoriKeet

    Comment by LoriKeet (original poster) at 1:32 PM on Aug. 6, 2010

  • what about VA home loans? we bought our first and only home with no money down , VA loans are a godsend and military people deserve it....and you know what?? we didn't get too much house and we can afford our mortgage payments.
    michaux

    Answer by michaux at 2:22 PM on Aug. 6, 2010

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