I think the housing stimulus rescue bill will fail.
Here are my reasons.
Too many unqualified people bought houses they really couldn’t afford.
They’re in over their heads. Nothing Washington will do will change that. Unless our brilliant lawmakers promise to pay off their whole loans for them. Whew!
I remember some tenants my Dad had a few years ago who could not pay their rent. He had to go after them every month to get it; something he usually doesn’t have to do.
Finally, they announced they would be moving.
He was relieved and put the property up as a Section 8.
They told him they were going to buy a house.
His question was if they couldn’t afford to pay their rent, how would they be able to pay their mortgage?
And how could they get financing with such a poor credit rating?
Here’s my other reason why I think the housing stimulus bill will fail.
Now we’re finding out a large number of people were not exactly truthful when they applied for their loans.
They lied about their income and did not give enough proof of income.
I can’t help but think there were a lot of savvy mortgage brokers and banks that saw through all this foolishness and let the loans happen anyway.
So- those folks will have to go through the process again- this time for the government to prove they are legitimate- to get the help from Washington.
I don’t know about you, but if I had lied, I don’t think I would risk all that coming to the surface. Once you’re found out, you could get a Federal prosecution.
I think I would just let the property go and probably hit the road.
What do you think?
Do you agree with me? Or disagree?