Tax Credit as a down payment part 4...An alternative announcement from HUD

The same reporter from the Arizona Republic that was the source for my post on Tuesday has updated his article! Not really sure how the guy was able to publish an article that wasn't fact checked by his editor before it was published is a different subject altogether.

What a load. If HUD can't even manage the announcements relating to this fairly significant policy change how can we expect that the entire thing will actually be thought through. Mortgagee Letter 09-15 should have never been released.

Maybe this could be used as an alternative announcement:

Attention all first time home buyers..
We, at HUD, really want to help you out when you buy your first home. We really, really do. In an effort to stimulate the housing market, despite the consequences, we have decided to bow to all the lobbying efforts of the home builders and the NAR.
Starting June 1, 2009 all you need to do is call us at 1-800-GET- CASH. Tell us why you think we should send you tax payer money and you will get a check, it's that easy.
We figure we have lost so much money already a few extra billion won't be too hard to explain. Of course, if you would like to make a donation to our cause please call 1-800-VACUUM. We accept donations in all currencies except US $'s.

I completely understand the motivation for the first and second versions of the 1st time buyer's credits. From my perspective it has gone as advertised. Personally, I have seen more interest from 1st timers since late 2008 than I had in the past 4 years in the business. I don't specifically market to that segment, so for me to have an uptick says that it was working.

As it is right now the program makes sense. Put a little skin in the game now, get a nice little nut from Uncle Sam next April. It is an established fact, when people put their own money into a deal they are less likely to default on a loan. Did I mention that the existing program works?

The housing market is still experiencing pain, OK mostly the sellers. It is called a business cycle for a reason, we cycle up AND down. I am really confused why there are attempts to bring the market back to a place that is even in the vicinity of where we were a year and a half ago. There are a number of people suffering from the effects of it now.

Simply put what we have going on now is an effort to manipulate the RE market by HUD. I don't think we need it.