Get our Housing Market Back on Track Bring it Back

By
Real Estate Sales Representative with Realty Professionals Heartland

This is a comment from a Mortgage Broker "The requirements set forth in the latest mortgagee letter will take place Jan 1, 2009.  My reference to October 1, 2008 is that lenders have now stopped doing seller down payment assistance as of Oct 1.  Remember, gift money, grants, bonds, charitable contributions (churches, etc.) are acceptable.  We just can't use seller contributions for down payments.  Sellers will still be allowed to contribute 6% towards closing costs."

So here as before the sellers could participate in a buyer's down payment assistance program and it would be a total of 6% to help the buyers get the down payment AND Closing costs paid.  NOW..... As this state's THE SELLERS CAN STILL GIVE 6% but buyer has to pay 3.5% WHICH CAN BE RECIEVED AS A GIFT NOT FROM SELLER. So isn't this just a way to get MORE money to replenish all the monies lenders lost. Then there is now going to be UPMI which is PMI paid up front, this I am sure is to help replenish the billions of dollars depleted from the PMI. There is also monthly PMI. Wow so really I thought this whole new program coming out was to help the people, but sellers are still conceding the 6 % which in my opinion is way too much and they pay 6% commission, which is 12% just off the top before closing costs of their own.  So will sellers ever get a break? I thought they would. Now the buyer can STILL get 100 % financing by using a charitable contributions from grants, bonds, etc.

So now the Seller pays the same because now the money is needed for all the RAISED COSTS OF THIS NEW PROGRAM, and there is 9 months to a year's worth of homes on the market so seller wants to sell and then buyer then gets the 3.5(which was 3% down), from a charitable source so does it not remain the same, the buyer still has 100% financing. In my opinion this Bill is not to help us the people but to help the government which is HUD, Freddie Mac, and Fannie May, which are the government backed loans.  This Bill is going to take much more money from consumers to replenish the government money.  What if we all boycott and say for 1 month we won't buy or sell any Real Estate related to these programs. That is what the union does... Why can't we the people do that?

Comments (11)

Marcy Fedalei
Keller Williams Realty - Spartanburg, SC

Great start on ActiveRain! Welcome and thanks for sharing your thoughts and ideas.

Nov 15, 2008 10:31 PM
The Trumm Team Omaha Homes for Sale, Real Estate
Keller Williams Greater Omaha - Omaha, NE

Welcome to ActiveRain!

If you would like a few tips on getting the most out of ActiveRain, please visit my blog Welcome to Active Rain.  It has a few simple steps of what to do now that you have joined.

If you ever have any questions, just let me know.

Troy Trumm

Nov 16, 2008 12:37 AM
Yvette Gardner
Keller Williams Realty, Spartanburg, SC - Spartanburg, SC

Welcome to the Active Rain community. This is a great site with lots of information.  Have fun with it and hope to see more of your blogs soon!  We have a team of four outstanding full time agents to assist your buyers and sellers in Spartanburg/Greenville, SC.  Let us know if we can ever help. Again, welcome to AR!!

Nov 16, 2008 01:29 AM
Morris Childs
PEP source - Spartanburg, SC

Welcome to Active Rain. It gets easier after your first blog. Just blog about what interests you.

Nov 16, 2008 02:09 AM
David Painter
Keller Williams Realty - Spartanburg, SC

Good to have you on Active Rain. Looking forward to reading your future blogs.

Nov 16, 2008 10:39 AM
Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hello Laurie,

Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to you!

-Keith

Nov 16, 2008 11:33 AM
Bill Kennedy
Keller Williams Realty - Greenville, SC
Homes For Sale Greenville SC

Welcome to Active Rain! This is a great website for building your business, as well as learning from others.  Pat yourself on the back, because you made a GREAT choice in joining the blogosphere!

Write often, and write whatever comes to mind.  Blogs about personal topics and non-real estate items are often the best.  It helps your readers to bond with you, and ends up bringing you a lot of business!

Good luck with your future blogging.  If you'd like more info on points in Active Rain, I wrote a blog about it (click here). Feel free to ask me any questions if you need a hand!

Nov 16, 2008 11:43 AM
Lorena Westervelt
Van West Realty - Greenville, SC
Co-Founder/Co-Owner

Hello, welcome to Active Rain! This seems like a wonderful environment to network as well as learn from others. I hope you enjoy yourself and participate often in the Active Rain environment!

Nov 16, 2008 02:23 PM
Nance Burdette
Keller Williams Realty Partners - Spartanburg, SC

Welcome and congrats on signing as a member of ActiveRain. Being a new member myself for only a couple months, I truly see the awesome advantage that blogging can be, (and it's fun). I am pleased to see the quantity of abundant professionals sharing their knowledge and ideas. Everyone has been so very kind. And so much to read!!! I hope to continue "reading" your blogs in the future.   Best of Luck,  Nance

Nov 16, 2008 02:26 PM
Rick Sergison
EXP Realty of Canada Inc., Brokerage - Pickering, ON
Durham Region Real Estate Blog

I just stopped by to welcome you to Active Rain. I hope that you find it a great benefit to your business and that you see the value that I have also found here. I am from Charlottesville Virginia and using Active Rain has really increased my business!

My main blog on Active Rain is here: Charlottesville Real Estate Blog, not the link at the bottom of this post. 

I hope you will look into the many groups as there are some great group both local and broad based,.... 

enjoy!

Nov 17, 2008 08:42 AM
Steve Vennemann-Hennepin-Dakota-Anoka contract for deed property-Ramsey-MN
BoardWalk Premier Realty INC - White Bear Lake, MN

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On behalf Http://www.mnlakeplace.com  we are happy you became a member of action rain and we wanted to welcome you to http://www.actionrain.com . It is a very good site to learn and network and meet a lot of real estate agents/brokers and mortgage consultants.

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Nov 18, 2008 04:02 AM