Government Buydown Story Leaked!!

If you haven't heard, there has been talk about the treasury dept. lowering the interest to 4.5%.  However, what you might not know is that the National Association of Realtors (NAR) was in secret talks with the treasury about how this would affect the economy.  The proposal would be something like this:

"A buyer would qualify for a traditional loan (from Wells or others) and then the government would buy the loan down to 4.5%.  The government would get the money by issuing bonds at 3% thereby making a 1.5% profit on the buy-down.  This program could only last six months or could go up to 18 months."

Well, The bad news is that there was a significant leak regarding these discussions as a story appeared in the Wall Street Journal, New York Times, and the Washington Post yesterday morning.  NAR claims no responsibility in the matter and apparently treasury is not extremely happy!  The net of this leak is that buyers potentially may sit on their hands until this buy-down takes place!

I believe this proposal is in the best interest of the industry and real estate practitioners.  Please galvanize your offices and agents to email congress and our senators to approve this buy-down.  There is perhaps a 50% chance that there will be an announcement on the weekend for this program.  This lobbying needs to take place over the next week!  Please contact government officials to express your approval of this type of buy-down.

A sample letter would look like this:

I support the proposal to have the government lower interest rates to 4.5% for the purchase of homes.  This proposal, in its current state, could potentially change the picture for the entire real estate industry and therefore the entire economy. 

I believe this proposal is in the best interest of the industry and the country as a whole.

                        Best regards,

                        Name

In addition to sending correspondence to your senator, please also send it to your local congressperson.  Click on the link below, add your address, and you will see the link for your local congressperson.

                                             http://www.visi.com/juan/congress/

If you are considering selling your home or purchasing real estate in Contra Costa, you owe it to yourself to contact Steve Dawson for all your real estate needs in the East Bay.

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