Foreclosure Resolution Blog

While there’s a lot to criticize about the American Housing Rescue and Foreclosure Prevention Act, there is one very positive aspect to this bill…

It eliminates down payment assistance programs on FHA loans.

The earlier House version of the bill would have allowed this practice to continue, this ridiculous measure was eliminated when the bill was finalized. 

Ignorant politicians like Maxine Waters were saying that these programs had “expanded homeownership.”

Apparently, her idea of “expanding homeownership” was to hand someone the keys and then pull the rug out from underneath them:

borrowers who used these programs were 3 times more likely to default on their mortgages, adding to the foreclosure problem.

This caused FHA to incur $4.6 BILLION in unexpected losses this year.

Somewhere out there, someone’s cursing the gub’ment because they’ll now have to save up for a down payment.

They oughta be thanking their lucky stars.

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This entry was posted on Thursday, July 31st, 2008 at 12:13 am and is filed under Avoid Foreclosure, foreclosure legislation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.