@Anonymous wrote:
just my .02 -- but this is gonna create a lot of loan defaults down the road, which is what i thought we were trying to get out.
This was my thought exactly, too. If people are coming to the closing table with no money to put into the home but solely relying on the $8,000 handout it does not bode well for the future, imo.
I think the same thing holds true for the skimpy 3.5% down requirement for FHA loans. It doesn't take much downturn to wipe out the puny equity, and today people seem to want to walk away once the home goes below their loan value.
We are just making a new class of sub-prime loans, imo. But we are so focused on short term gains (i.e., the next election) that we have lost sight of the long term picture.
