WHY NOT

I must admit I have spent a lot of time wondering why a plan would not work that would simply give people the ability to buy a home who would agree to do certain things. Namely, as you recall; pay their bills on time for a period of 6 months, agree to counseling/training once a month for 6 months, not take on any more debt, and be otherwise qualified in earnings and employment.

Here is why, (my opinion as usual):

No one sees the magnitude of the problem. A large part of the population can’t buy and that is adding to more foreclosures and bigger inventories. Fewer people can buy homes for sale because they can’t qualify and qualification for mortgages is getting harder every day for a number of reasons. Loan programs are going away and unless I am imagining things more and more errors are on credit reports which in themselves ruin the ability for most to qualify.

It would just make common sense in this day and time to take a chance on people and let them buy a home to help dig housing out of the hole it is in. Problem is Government and common sense is an oxymoron. Most politicians are about themselves and the system is not set up to work it is set up to fail in matters such as these. To many self interests to ever agree on something that is so simple.

Credit scores are taken as gospel. Credit scores are an indicator of the past but are not in themselves an indicator of the future. Credit grantors report credit in error. A credit score can be ruined over night and not fixed for months if at all. Credit scores in many cases are arbitrary and not a good indicator. The credit reporting system is corrupt and riddled with errors.

Politicians think they know best. The two sides of the isle can’t agree on what is best for the consumer but would not bother asking the consumer what they would like to do. A consumer would gladly pay a higher FHA premium to get the chance to buy but politicians think that is bad. Consumers would gladly earn the ability to buy a home but politicians think that is discrimination. Everything is about free, now, and no consequences and no one has the courage to change it.

My plan would work and work well. VA has proved 100% loans work. HUD approved counselors will give you absolute statistics to show counseling does work and works well. Masses of people would jump at the chance to enter the program because their alternative is to live in overpriced rental units.

The reality is this; any program like this it is not likely to happen for the above reasons and a sin of others and that is truly unfortunate.

More to come

Lonny