Thanks Fed, thanks for the help!!!

Real Estate Sales Representative with The Lang Team - Keller Williams Realty

I know this is not “new” news, but the closer we get to October 1st the more I get irritated about the passing of housing bill HR 3221.


But the bill will help millions of people,… help first-time-homebuyers purchase homes,…help people save their homes,… make positive changes to FHA so more people can be helped,… help people stay out of foreclosure…….RIGHT??


Well, the fact of the matter is that even though there are some good points to the massive housing bill recently signed, it falls far short of the help that is truly needed to steer us out of this mess.  The most obvious are the changes to FHA.  FHA has this year been a loan program of choice for those without 10% or more to put down and has been used more this year than the last several years combined; a loan program for the first-time homebuyer and many others.  After rumors that the down payment requirements may be lowered to perhaps 1.5% to allow more hard working people to qualify for a loan, the change that was agreed upon was to increase the minimum down payment from 3% to 3.5%.  Not a big change, but clearly in the wrong direction.  Another change was the elimination of the use of down payment assistance programs such as Nehemiah.  The result, fewer people being able to purchase a home.


What about this tax credit I heard about?  True, first time homebuyers would be able to qualify for a tax credit of up to $7,500 if their income is less that certain limits; but how does a tax credit next year help someone to purchase a home today?!?  Oh and by the way… is really a loan that will need to be paid back over the next 15 years.


What about the $300 billion allocated to FHA to help homeowners who are facing foreclosure to refinance to low rate loans?  Question:  how did the last short sale you worked on go?  This is nothing more than a “short refi”.  With the legislation, it will still be up to the lenders to be willing to “write off” the amount of negative equity in the property to allow the owner to re-finance the home for a maximum of 90% of the newly appraised value.  Guess what?  You will still be working with the dreaded loss mitigation department – yup, that will work just fine.


It is more and more apparent that the legislation was and is, for the most part, political posturing.



Posted by

David Lang

Keller Williams Fort Myers & the Islands



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Earl Johnson
Fort Lauderdale, FL

Ohhh so true David.  It hurts me... literally hurts me to see so much of our leadership clueless with (let me say this) what I see as the real world.  Yes, there is two sides to every story but there should be a concensus on what direction is considered helping hardworking families... taking money out of their pockets can not be help.  Giving them a Government Loan as a TAX BREAK can not be considered a tax break!  I can go on... but that would be a whole new blog!!!

How can we fight this when all our words go on deaf ears?  My current solution is to do all I can before Oct. 1st and then do all I can after.

Sep 05, 2008 02:12 PM #1
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~

I will take any tax credit they give me at any time sure it won't help right away but money is money.

Sep 05, 2008 02:29 PM #2
Garren Grup
John R. Wood REALTORS - Naples, FL
REALTOR, ABR, CNE,CDPE, GRI, Naples & Bonita Springs, FL

David, you brought up some important points that were... shall we say overlooked by NAR when they put out their recent summary that I included in my blog Highlights of the Housing Bill.  Well at least it will not apply until purchases made until April 2009 and will then supposedly end in July 2009.  ...Is that correct?

Sep 05, 2008 02:32 PM #3
David Lang
The Lang Team - Keller Williams Realty - Fort Myers, FL
Taking the stress out of buying and selling.

Thanks Earl,

Don't you wonder who the "experts" were whom they consulted for this?  I truly believe all those involved wanted to be "on the record" voteing for something whether it was truly a solution or not.

Sep 05, 2008 02:32 PM #4
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Property and Asset Management


Thanks for the post. I feel your pain. While there is a silver lining for a very small number of home buyers. There is very little help for those who really need it. The economy has eroded the livelihood and real estate investment holdings for many Americans and for them, this bill offers nothing.

Sep 05, 2008 02:33 PM #5
David Lang
The Lang Team - Keller Williams Realty - Fort Myers, FL
Taking the stress out of buying and selling.


It will apply to purchases between April 9 2008 and July 1 2009.


Your right, "money today - payback tomorrow".  It is an interest-free loan as well for the next 15 years.  If you sell your home (and realize a profit) the balance of the loan will be paid out of the proceeds.  However, if you break even or worse on the sale of teh property, the debt will be forgiven.  Not bad a bad deal, but it still does not help you get into a home today.


Sep 05, 2008 02:41 PM #6
Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

David: Thank you! These programs are always "too little too late" in my opinion. Although the gesture is nice, it does little to alleviate the problem. An argument could be made for the free market to run its course. Although this can sometimes be painful, it's exactly what is happening now. Take care.



Sep 06, 2008 02:43 AM #7
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David Lang

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