Have you heard of “The Back to Work Extenuating Circumstances Program?” This is a new government program, designed to allow people to purchase a new home only 12 months after they have been through a financial hardship, such as a foreclosure. Yep you read that right. 12 months after a “Negative Credit Event” people will again be able to buy a new home. Currently people wait anywhere from 2-7 years to purchase, after losing their home.
What do you think about that? I’ll be honest with you. I don’t want to turn this into a political blog but, I don’t think it’s a good idea. Actually I think it’s a bad idea. I understand that the government wants more buyers in the market to continue moving it forward. I also understand that I am in the business of selling homes. However, a lot of people who were victims of the housing crisis were also victims of their own bad thinking. Now let me be clear. Not everyone that had a foreclosure etc is completely at fault (so please don’t send me hate mail). But it appears that the same poor thinking that caused the housing crisis is at it again.
I also want to be clear about something else. I am no economist. Maybe I am missing something here. I understand that there are millions of people who lost homes and are on the rebound. I understand the positive impact that would have on the market if they all bought homes. On the flip side of that coin, we don’t have enough inventory now. Currently we are in the middle of a sellers market. Every Realtor is fighting tooth and nail to get offers accepted. Now the government wants to allow millions of buyers back into the market? There has been an ongoing rumor in the industry for the past year or so. The whispers are that the banks have a surplus of bank owned homes that they haven’t processed and put onto the market. Again this is a rumor. Or is it? I hate to sound like a conspiracy theorist here. But last year out of nowhere there is no inventory. Home values start increasing rapidly as the demand goes up and inventory levels go down. Now the government institutes a new way for millions of people to enter the market again. Sounds fishy to me.
If I am missing something here please inform me. I want to reiterate that I am in the business of selling homes. I have to make a living just like everybody else. Having said that I also want to be clear that home ownership isn’t a right. It is a privilege. Maybe I am missing the boat here and, I assume if I am way off that someone will let me know. But a person with a recent foreclosure that has a 500 credit score may not be a person that should own a home right now. Just saying...I’d love to hear your opinions. Leave a comment and we can talk.
Chris Taylor
Keller Williams
586-524-1095
Chris.taylor@kw.com
www.christaylor.kwrealty.com
