Public funds to pay for private debt - Houston aims to clear balances so some can buy

This program better not go through. This country is turning into too many handouts for people that don't earn them. If you need to clear out $3000 worth of debt to get a home then do it yourself. Otherwise keep renting and keep saving.

 

Amen.

 

Totally agree. I've supported the initiatives taken by Washington in the recent month, because I have felt that something needs to be done by the government to help get this economy back on track. But sooner or later, you have to say enough is enough. Texas and Houston are still doing a lot better than other areas of the country. So why not save those funds that would have been used for this initiative for the time when (or if) the s*** really starts to hit the fan.

Plus, if your credit score is not quite there, then wait a few months to bring it up. Because you're obviously not quite ready yet. We're gonna start looking for a house ourselves real soon, and I've already checked one credit score, but if for some reason my others aren't as high and I can't get approved, well I guess we'll have to wait (hope not though).

 

please list examples of the too many handouts that this country has recently started dishing out.

 

We have become a nation where laziness, irresponsibility is rewarded with a handout and hard working people get more taxes.

 

I don't have a list, I'm going on the what I've heard about the foreclosure plan and this. It's my opinion.

 

by falling short 10 to 20 points, doesn't that define sub prime? are these not the same type of people with poor credit that contributed to getting us in the housing mess in the frist place?

 

People who blame sub prime for the housing mess are using this as an excuse for a bigger problem. people have simply over extended their own credit. I unemployed, has no significant savings and I was still approved for 250k. The problem with this is people who apply for credit use pointless formulas like debt-to-income ratio as a standard to what they can afford. Factors such as history of savings, job security and debt-to-income ratio should go together to assume a risk. It doesn't matter if someone has a 100k salary and 800 FICO score, spending every last penny of your paycheck makes you a very risky person. Too many people have trusted what they banks say they can afford and have made bad decisions.

Supply/demand is probably the biggest reason to this problem. Banks lowered their lending standards, so we had a huge demand for new housing. This in turn sent builders into a frenzy. After the crash, you have a huge inventory of new housing which the builders are selling at break even prices. Your forclosures sky rocket because 1) They bought the house at an inflated value and 2) they can't unload their house because they are competing with new homes that must sell.

It was idiotic to get to this level because it could have been prevented if a few of these parties would have stepped in to stop it instead of giving into the greed. I hold the government, lending institutes, and the buyer all responsible for this mess. All three should have known better than to be allowing the massive amount of ARMs given out.

 

If somebody can't manage to pay their credit card, the city pays it off for them. Their creditworthiness is artificially inflated, now they have a 100-200k mortgage instead of $1-2k credit card debt. If they couldn't afford to pay the credit card company, how can they afford to pay the mortgage company?

 

Houston gonna pay for my mortage and my gas!

 

I heard on the radio that it was dropped, but it is insane that it was even considered.

 

Who on city council came up with this idea? I want to know who to vote against in the next election.

 

It was dropped last night...after the story starting hitting the national news.... LOL.

Sheesh, what a horrible idea. I can't imagine anyone (besides people who don't want to pay their own debt) possibly thinking this was a good idea.

Maybe the whole thing was some kind of Andy Kaufman-like prank?

 

not defending the idea, but the idea is to prop up the housing market because foreclosures and empty houses hurts all of you homeowners' property values.

I know alot of people are pissed about all these plans trying to help overextended homeowners or this plan to help people buy a home but the goals are to help the overall economy.

 

Giving loans to people who could afford them was how the whole subprime mess got started. There is a reason you should have a good credit score and verified income to get a mortgage.

Let's not make the same mistake again.

 

When I hear about property values, don't you want a lower property value for tax purposes? It's only those that are trying to sell there houses that need a higher property value? I'm sure I oversimplified this and maybe someone can educate me on what I'm missing.

 

its not to people who can't afford them, its to people with mid range credit scores.

 

People have mid range credit scores because they were shaky payers and probably live check to check. These are exactly the type of people that don't need to buy houses.

 

but they did and the banks made **** load of money giving them. so now if you don't help them (i don't know if this is an adequate/proper way of helping them) they will not be able to pay their mortgages, meaning ALL PROPERTY VALUE will go down.

so even though these people should not have been given loans, they were, and now if you don't prop up the best amongst them, it will hurt us all.

are people really this stupidly myopic?