As the "stupid" continues to fall out of the "politicals" mouths on Capitol Hill talking down to the masses pretending to have special enlightenment on the problems they helped create the rest of us on the front lines for over two decades actually understand the problem and saw first hand what happened, why it happened, what needs to be done and alas we are never asked.
The "food for thought" fed to our mis-guided lazy representation (on both sides of the isle) comes from the status quo lobby that got us here. I hope you do not think this "stimulus" package is the real deal - it's not.
A simple cost neutral and until its demise effective tool to help stabilize home sales is the down payment assistance program.
I realize there are folks out there that seem to think the reason for this calamity is driven by the fact that people didn't invest by putting a substantial down payment and that's the reason they are struggling. Or there was some conspiracy with the Appraisers and so forth (like the AG of NY seems to think). As I have pointed out in the past in my responses to those with that opinion and in other blogs the evidence to support such thinking is anecdotal at best and in fact the bottom line in prudent lending determines the borrowers ability to repay the loan and frankly down payment does not necessarily reduce the risk of loan default.
Don't get me wrong I think saving your money and having a nest egg, or money put aside for a down payment is a good thing but if you were to ask the folks that put 20%, 30% or more down three years ago on their purchase wish they had kept it in their bank account (compounding modestly) particularly those who are now out of job and could use the cash!
Cash compounds and equity doesn't and in a calamitous market like this the equity or what I refer to as a lazy asset has disappeared.
If you look at the month of October 2008 you will see the down payment assistance program played an important role and since its demise courtesy of the idiots at HUD and friends in DC a once revenue neutral invaluable tool and opportunity for folks to take advantage of the lower home prices is gone. The spiral of foreclosures continue and try making an offer on a foreclosed home - plan on waiting six months for a response on your offer! There are folks that have good jobs and can make the payments no problem but don't have the cash.
Have you ever written to your representation in DC? I have over and over and I get the postage stamped non-response response. What a world we live in. In order for you or me to be heard is to form a group and lobby if we have the resources to fly back there to do so.
My call to action is to everyone out there - Buyer, Seller, Realtor, Title Company, Appraiser, Escrow, Lender, Bill Gates - all of you. It is important you contact the folks in DC and tell them to bring back the down payment assistance. If you think this is a minor little point I ask you to visit this link:
http://www.dpagroundswell.org/news/DrRobertFountainReport122208.pdf 
Get your head out of the sand. You are employed for now but for how long? 2009 will be worse than 2008 in many ways and the evidence has already shown itself with more to be revealed. It's time America. Sitting on your hands only makes them fall asleep and you need to be beating your representatives over the head by phone call or email but you need to do something.
Despite the non-response response I keep going at them and I will continue to do so until they start moving the right direction. This isn't just about me it is all of us. I too in the past had "sleepy hands" but the writing is on the wall so I choose to act. How about you?
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