The Fed’s are at it again and imagine this they have been unable to waste our tax money. Yes that is right. I am talking about the “Neighborhood Stabilization Act.” This is a program for local Government to buy and maintain foreclosed homes as a means to the rest of the neighborhood from going to crap. The problem the Fed’s are having is that they are being out bid by private investors. Imagine that! Investor’s see the opportunity in today’s real estate market and are buying everything that they can.
Scoot Garrett the HR 3706 author seems to think that raising the minimum 3.5% FHA down payments to a minimum of 5%. Mr. Garrett seems to think “the additional 1.5% will offset the declining market.” Good god! The market is no longer declining!
So how do you save the Fed’s 3.9 billion? Let the private sector buy up the foreclosures. This should be a lesson to us all. Leave it alone and the market will correct itself. Yet the bailout money continues to be thrown around.
Look if you feel that I am hard on Fed programs then you are correct. When I see government wasteful spending or uninformed decision making in the mortgage industry I will speak out about it. Remember all of this waste equates to more time and more cost to the consumer but it is all being done to protect us all.