Home ownership is a big expense and responsibility and should not be taken lightly. Home ownership is not a right, it's a privilege. The federal government strongly encouraged lenders to make loans to people who under normal circumstances just did not qualify. Not only did they not qualify but they also did not understand the terms of their contract. They did not understand ARM, balloon payments, fixed mortgages, points, interest-only, etc. I can't tell you how many people I've talked to over the last few years who were so proud of their first home--but it was purchased with an interest-only loan. Some of these people are college students in debt who had no business buying a home.
The reason I bring all this up is because we have yet another proposed plan in Houston, Texas in which the city would give (yes, just GIVE!) $3,000 to first-time homebuyers so they could pay down credit card debt to increase their credit score and qualify for a mortgage.
I can't believe Mayor Bill White of Houston actually thought this should have gone for a vote. The mere fact this was proposed and up for vote should have gotten every SOB who backed it---FIRED. The people of Houston should be livid that this was even on the table. The only reason the Mayor backed down is because the PEOPLE found out about it and raised holy hell.
From the Houston Chronicle
Councilman Jarvis Johnson said the city should continue to help people move
from renting to owning.
"But I do believe we can do it in a better way, a more thoughtful way,"
The money from this "Credit Score Enhancement Program" amounted to $444,000 and is what was left of funds appropriated for emergency home repairs from Hurricane Ike.
Instead of giving this money away to people to pay off debt, how about giving it back to the taxpayers? Gee, what a concept!
Yes, it's great this was taken off the table but the fact that it was even being considered is very scary indeed. The people of Houston should show their anger over this at the polls in the next city election!