According to my sources, the hammer has slammed down on the non-profit AmeriDream program bringing a close to this DPA chapter. The "heads up" is that if a home buyer is purchasing a home, their loan must be in process with a valid contract by August 29, 2008 and closed by September 30, 2008. I suspect that the Nehemiah program will soon be history as well, if it isn't already.
Typically, I play the devil's advocate and can see both sides, but I feel this is going to have a further negative impact on the housing market. As we're all aware, the onset of foreclosures and short sales has caused declining housing values and sent Fannie and Freddie running scared. The obvious positive is that buyers who were previously shut out of the housing market are slowly re-entering and taking advantage of the lower pricing. The profile of today's median price range buyer either needs assistance with closing costs, down payment or both. Without these entry level buyers, inventory will continue to mount fueling the fire for recession.
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