Tuesday, October 25, 2011

Buy A Home For $100

Here's the latest courtesy of our idiots in Washington... as if low cost sub prime mortgages didn't put us in the financial crapper in the first place.
According to a new proposal by HUD, beginning this month and continuing for a year, anyone with a just $100 will be allowed to buy a HUD-owned REO home. ... limited to only... 28 states! But it gets better: "HUD’s $100 down payment incentive program can also be applied to an FHA 203k loan, which can be used to fund repairs and renovations on the home. The 203k program allows buyers to finance both the mortgage and additional money for rehabilitation needs with a single government-insured loan." Said otherwise, a $100 downpayment gives one unlimited degrees of freedom how to spend non-recourse, massively levered capital, and courtesy of money's fungibility, to even fund, shhh, the occasional iPhone.
Can you just see the fraud now????
The 203k program allows buyers to finance both the mortgage and additional money for rehabilitation needs with a single government-insured loan.
"Construction work" done on these homes by the new owners' buddy's "contacting business" will no doubt produce a plethora of outrageous and fraudulent costs for renovations - paid for up-front courtesy of the taxpayer.

Heck - the program even includes homes in the Caribbean!
That's right!
A Benjamin gets you a home in the Caribbean!

and as an extra added bonus... In addition to $100 down instead of FHA’s typical 3.5 percent down payment, HUD says it will also cover up to 3 percent of the closing costs in most cases.

Heck!!! Practically free houses from the government!
The sheep will just have to make a huge mortgage payment every month!
With inflated money no less!
Probably front loaded with oodles of interest for the banksters.
Think of it as rent... because they won't own the property anyway - the bank will.

And the property that they "buy" can even eventually be stolen from them by the government via eminent domain! So if the government wants to put up a shopping mall or other corporate playscape then the "home" is the government's.
No biggie.

Ah.. the joys of over-leveraged home ownership.
Ain't it great??

Honestly, this is a disaster waiting to happen!
More over leveraging is NOT what we need.

(but what happens if they can't pay the monthly?...Shhhh...same as before - rinse, lather, repeat)

Read more about it here (DSNews)


Elisheva Hannah Levin said...

As someone who has a nice, unmortgaged home on the market, I wish our IDJITS in Washington would just stop already! Their fooling with the housing market is just making it harder for honest buyers and their brokers to actually get loans they really qualify for, and that is why the housing market is in the proverbial CRAPPER.

jodi said...

Eminent domain isn't the only problem. Our mortgage is almost paid (we will be debt free within two years) but the tax office claims the sellers didn't pay taxes the year we bought the house. With NO EVIDENCE the county put our home up for auction if we didn't pay the back taxes.

Now, since we didn't own the house the year in question, we don't have any records to prove it was paid. The county has NO RECORDS because its local tax they claim wasn't paid.

The local tax office submits a list (4 column spreadsheet) with name, date, amount owed and amount (allegedly) delinquent to the County once a year then DESTROYS all records.

The law permits the county to then auction your home unless you pay what they want.

So even if you own your home debt-free you never truly own your home.