Is Baton Rouge HUD Money Taking The Wrong Homes Off The Market?
This morning, the National Real Estate Post email, with Brian Stevens and Frank Garay, is entitled, "Is HUD Money Taking The Wrong Homes Off The Market?" Specifically, Brian and Frank are asking why HUD Neighborhood Stabilization Program funds are being used to purchase homes that are not in neighborhoods needing Neighborhood Stabilization?
HUD says NSP is "The Neighborhood Stabilization Program (NSP) was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. Through the purchase and redevelopment of foreclosed and abandoned homes and residential properties, the goal of the program is being realized."
HUD or FHA was developed to help those in need in lower price ranges buy a home, period. In my mind in Baton Rouge, that would be homes from $40,000 up to possibly $150,000. It was only after the national housing meltdown, that HUD / FHA raised the limits so those wanting to buy high-end housing could use FHA to do so, thus helping to usher in a national housing market recovery. Remember FHA financing being used to purchase those $400,000 to $500,000 MILLION DOLLAR HOMES IN 2009-2011? If I remember right, it might have been up to $600,000 in California...not exactly sure of the number. The US Tax Payer is on the hook for BILLIONS of HUD FHA high end insured loans in the name of national housing recovery.
OK, it's 2013 and the news is reporting improving housing markets across the USA. So, HUD / FHA has no business insuring high-end home sales, which spiked my anger as a US Taxpayer when I used this high end Baton Rouge home sale this week. The High End Baton Rouge Home sold in 01/2013 for $369,000. In my opinion, the bottom line is that FHA Financing has no business being used for high end $369,000 home purchases in Greater Baton Rouge. And, in Greater Baton Rouge Real Estate, a $369,000 home is a high end home!
Bill Cobb Appraiser blogs about the Greater Baton Rouge Housing Market.
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