I was watching a (local) news story this evening about each state getting 16M$ of bailout money to buy and rehab foreclosed homes. The story was presented as an attempt to stabilize housing values (HA!). According to the reporter these, state owned, rehabbed houses are to be sold to low and middle income families only.

Now I’m going to go out on a limb here, which is why I put this thread in Conspiracy Theories. I theorize that the states are going to buy these foreclosed houses for pennies on the dollar, spend a few dollars to have contractors doll them up, and then sell them at a fraction of the cost of what good, honest, decent, bill paying people paid for the houses in the same neighborhood’s, to people who could otherwise not afford to buy them. That sounds like the HUD program, (only in better neighborhoods), to me.

If this happens, I feel that I’ve been disenfranchised once again. Not only can I NOT participate in the acquisition of these homes but, the 110th Congress decreed that I, as a tax payer, cough up the money to pay for this program.

This kind of thing is going to raise all kinds of social issues like: How is selling those units below (or even at) current fair value going to help to stabilize the housing market overall? Who’s going to determine fair market value of these units? Who’s going to hold the paper on these units? What roll is (state) government going to play in ensuring that these quasi HUD homeowners will maintain their newly acquired homes at or above a standard acceptable by their neighbors who paid market value for their homes? What happens if these new quasi HUD homeowners run into hard times in the future and can’t pay their mortgage? Who will pick up the tab for that?

Yeah buddy, welcome to the USSA, the good ole United Socialist States of America.

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didnt mccain return to dc to work on the bail out plan that both parties insisted that we must have? Seems you are more worried about the falling value of your own home than anything else. I guess it never occurrs to you that someone paying full price for a house can still be a real nasty neighbor. I would rather pay taxes to keep someone in their home..than pay for ceo's to go to the spa....

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There is no greater sorrow
Than to be mindful of the happy time
In misery.

Dante

McCain returning to DC to work on the bailout plan. WHAT?

Worried about the falling value of my house. WHAT?

You would rather pay taxes to keep a family in their homes. WHAT?

The only thing you said that makes any sense whatsoever is “I guess it never occurrs to you that someone paying full price for a house can still be a real nasty neighbor.” and yes, you’re right, that’s a justifiable concern but, in this case, paying full price has nothing to do with it.

Has it ever occurred to you that having a neighbor from hell can bring down the value of your property whether the property is your primary residence or not?

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Your complaints are not entirely without merit.

Any way you look at it, the people who recieved no benefit from the real esate feeding orgy, but who are now expected to pay for the solution are getting screwed.

And had our government done nothing, we'd still be getting screwed.

There really is NO solution to this event which does not screw the people who gained no benefit from it to begin with.

None.

I believe money was made by the aquisitions made in the Savings and Loan debacle of the past.

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"The essence of the Liberal outlook lies not in what opinions are held, but in how they are held: instead of being held dogmatically, they are held tentatively, and with a consciousness that new evidence may at any moment lead to their abandonment." -Bertrand Russell

How much did you make on that deal? I didn't make anything until after I bought a couple of those houses that went back into foreclosure, rented them for a few years and then sold them for a tidy profit.

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Money was made by the gov in the bailout

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"The essence of the Liberal outlook lies not in what opinions are held, but in how they are held: instead of being held dogmatically, they are held tentatively, and with a consciousness that new evidence may at any moment lead to their abandonment." -Bertrand Russell

Savings and Loans Crisis - What Was the Savings and Loans Crisis?

Nope I was wrong it helped pay for its self with assests later liquidated but did not turn a profit.

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"The essence of the Liberal outlook lies not in what opinions are held, but in how they are held: instead of being held dogmatically, they are held tentatively, and with a consciousness that new evidence may at any moment lead to their abandonment." -Bertrand Russell

i think they are just trying to keep flippers out of the mix of qualifyers....

selling them for the most that they could would benefit the state because housing prices will stay higher, giving them more property taxes from all homeowners....

just a guess though...

No doubt that any state/county wants as many properties on the tax rolls as possible, but sale price and tax value are two different animals.

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well besides resurrecting robespierre

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The whole aim of practical politics is to keep the public alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.

HL Mencken (1923)

Public Housing owned by the Government is the goal, once again.


If we don't do it in high rises, let's try individual homes that have been foreclosed on!