Nehemiah - Ameridream - FHA financing....what does it all mean?

Good morning Jeff, and thank you once again for all the educational benefits you always provide in your posts. 

Jeff, I'm a bit confused. You stated that you think the judge will allow such companies as Nehemiah and AmeriDream to keep operating after March 28, 2008 but then said don't be the one who ran out of time or missed the boat. 

Do you mean that you don't believe the court ruling will come down in favor of keeping the Nehemiah and Ameridream programs active?

There is alot of nail biting going on in Michigan waiting for this to be resolved.  If it fails, it will hurt home sales even more.  

Jeff, thanks for clarifying :-)  I agree with you that it is best to see buyers have the 3% down and some reserves.  For those who don't have the 3% it doesn't necessarily make them a higher candidate for foreclosure though in my opinion.  

I have worked with many many buyers over the years who have utilized the Ameridream program with little out of pocket (upfront homeowners insurance, good faith deposit, inspection costs, etc ) and they have done well.

Those programs are truly helpful to the younger buyer who is fresh out of college or moving out of Mom and Dads home or newly married.  

Now we wait and see.. 

Hey captain Grand Slam....nice post....you're awesome at what you do.  FHA is the way to go.....I can't wait to see what happens next Monday.

How timely!  I just got a flier from a lender today, promoting Ameridream, and I thought to myself "that looks like the Nehemiah Program."  'Didn't know Nehemiah was still alive... 'used it a lot years ago.

Not sure I understand why these may be coming to an end with FHA, and I hope I can look back on your blog in a few days to read the status of this.  Thanks, Jeff!

I called the Judges office today and was informed that it was still on his plate and he had not made a decision. I sure wish he would because it would eliminate a lot of confusion in the marketplace.

Photo:  Mary Noble Ours Chambers:  (202) 354-3490 Courtroom Deputy:    Michelle Moon (202) 354-3155 Court Reporter:    Linda Russo (202) 354-3244

Judge Paul L. Friedman Judge Friedman was appointed United States District Judge in August 1994.  He graduated from Cornell University in 1965 and received a J.D. from the School of Law of the State University of New York at Buffalo in 1968.  Following law school, Judge Friedman clerked for Judge Aubrey E. Robinson, Jr., of the U.S. District Court for the District of Columbia and for Judge Roger Robb of the U.S. Court of Appeals for the District of Columbia Circuit.  He served as an Assistant United States Attorney for the District of Columbia from 1970 to 1974, and as an Assistant to the Solicitor General of the United States from 1974 to 1976.  Judge Friedman practiced law as an associate and partner with White & Case from 1976 until 1994. He served as President of the District of Columbia Bar from 1986 to 1987, and as Associate Independent Counsel for the Iran-Contra Investigation from 1987 to 1988.  He is a member of the Council of the American Law Institute.  Click Here to go to Judge Friedman's

This is from Ameridreams website:

February 28, 2008

UPDATE

Gaithersburg, MD - AmeriDream's programs including down payment assistance will continue.  On October 31, 2007 United States Federal District Court Judge Paul L. Friedman ruled in the case of AmeriDream v. Jackson that the Department of Housing and Urban Development could not implement its regulation on downpayment assistance. As a result of that ruling, the HUD regulation will never be effective at any date, or with respect to any downpayment assistance provider, unless the ruling blocking the regulation is withdrawn.  Judge Paul L. Friedman, the United States District Court Judge who issued the ruling blocking the HUD regulation, confirmed today in an oral statement that the regulation is, and will remain, of no force or effect with respect to any downpayment assistance provider until such time as a decision is made to the contrary by the court.

Furthermore, please be advised that while the judge said that he expected to issue a ruling on or before February 29, 2008, the injunction will remain in place until that ruling is issued - regardless of whether it comes before or after February 29. HUD issued a notice on November 1, 2007 stating that AmeriDream and other downpayment assistance providers are allowed to continue providing down payment assistance because of an injunction issued by a federal judge.

In issuing the injunction, Judge Friedman agreed with AmeriDream's position that there was a "substantial likelihood" that the regulation violated applicable law." Judge Friedman further stated that the regulation lacked a "reasoned analysis" and was based on "flimsy" support. Judge Friedman also questioned whether HUD acted appropriately in issuing the regulation in view of a published report that Secretary Jackson was committed to that course of action regardless of whatever public comments HUD would later receive. In view of those shortcomings and other considerations, Judge Friedman issued an injunction, effective immediately, preventing the regulation from taking effect.

As we all await Judge Friedman's final ruling, we encourage you to continue working with us to help low and moderate income individuals and families purchase their own homes through the provision of downpayment assistance.

As the Gold Standard for down payment assistance, AmeriDream remains committed to continue to fight the HUD Rule and to continue its mission to help individuals and families that are in need of a DPA program. Please check http://www.ameridream.org/ for the latest information regarding the HUD Rule.

AmeriDream is fully prepared to meet your DPA needs and to assist you with any transition issues as a result of the HUD Rule. Please contact your Outreach Representative or Customer Service
(or call 1-866-263-7437) for timely and professional service.

Again, thank you for your valuable support through this process.

Thank you, Jeff and Thank you, Marlo Newman!  This is all great information, as there are so many of us waiting to hear the final outcome...when and if that day comes.  Marlo, I think you need to put your comment as a separate blog so people can find this info!

Thank you, again!

So, now that Nehemiah is gone, do you have a favorite that works for ya?

So, now that Nehemiah is gone, do you have a favorite that works for ya?