The “Slap in the Face” Award: Betting the House
I’m calling this the first “Kick in the Teeth” award! It is so far beyond a “Slap in the Face” award.
Washington is easing mortgage requirements and wants no down payment for houses again.
This kind of stupidity didn’t do enough damage in 2007 through early 2009.
Yup, you heard me right. Our devoted public servants in D.C. have decided the housing market isn’t moving fast enough for them, so they are lowering lending requirements, and some mortgages will not require a down payment - again.
What could possibly go wrong with a plan like this one? Yes, I am being facetious.
People would buy a house they couldn’t afford and have none of their own money in it so they just walk away when things go south?
Gee, ya think?
Or the big banks, would they bend a few rules to generate more revenues by giving mortgages to unqualified applicants?
Or how about the flippers who buy with no money down, run up huge amounts of debt and then walk away from properties again when the market goes against them. Which it will!
Am I living in another dimension or something? What in the name of God are they thinking about in Washington?
This economy is not moving fast enough, so they decide to make the same mistakes they made in the 1990s and 2000s: give away houses to people who have none of their money invested in the deal.
This is beyond stupid, and if we allow this to happen again we all deserve what we get. In 2008 we could plead ignorance because few of us really understood what the government had done with mortgages in the name of the American dream - at least D.C.’s version of it.
But today we do know! And when it blows up again, and it will - real estate has had three major blowups since the ‘70s - but this time we don’t have any tools left to right the ship.
Think about it!