FHA’s First Time Homebuyer Credit – Good, Bad, or Ugly?

bgamall at 03:32 2009-05-18 said:

The equity of that 8k will be wiped out. It is a guarantee that it will be wiped out. Talk to me after 2011 and then maybe it will make sense if there are 30 year mortgages by then and if the banking system survives past that option arm tsunami. Permalink

Reluctant_Bear at 06:38 2009-05-18 said:

If you DECREASED the asking price by $8,000 instead of inflating the priuce by $8,000 you would: a) allow the market to start decrease to REAL market value B) Decrease the vigorish or cut to Realtors for having you sign some preprinted docs c) serve as notice that HYPE and lies about house prices ALWAYS going up is no longer acceptable d) help stem the inflation that is right around the corner.

All we need to do is also allow mortgage rates to become realistic according to their demonstrated risks , interst will increase back to 809% allowing house prices do drop more and become shelter instead of a "get rich" PONZI scheme to use Other Peoples Money (Pension Funds). Savings institutions will be able to minimize risks which will also contribute to tehir solvency. Bank Savings interset rates will also increase concomitantly with a change in the house as "investment" If these don't work we can repeal the mortgage interest deduction---which exists only in the USA as a plum to the NAR for years of campaign contributions. Permalink