Comments on: What Does the Proposed Housing Bill Do to Help the U.S. Subprime Mortgage Problems? http://www.creditwithdrawal.com/wordpress/2008/04/03/what-does-the-proposed-housing-bill-do-to-help-the-us-subprime-mortgage-problems/ Helping You Kick the Credit Habit, One Good Idea at a Time Thu, 31 Dec 2009 04:56:04 -0700 http://wordpress.org/?v=2.8 hourly 1 By: Randall http://www.creditwithdrawal.com/wordpress/2008/04/03/what-does-the-proposed-housing-bill-do-to-help-the-us-subprime-mortgage-problems/comment-page-1/#comment-1634 Randall Tue, 08 Apr 2008 03:06:21 +0000 http://www.creditwithdrawal.com/2008/04/03/what-does-the-proposed-housing-bill-do-to-help-the-us-subprime-mortgage-problems/#comment-1634 Yes, they go up for auction, but only if back taxes are owed. Otherwise the bank just 'repossesses' the house and owns it outright. If the house goes up for auction, the bank holding the note bids at least the amount owed, and they get the house unless someone else bids higher. Yes, they go up for auction, but only if back taxes are owed. Otherwise the bank just ‘repossesses’ the house and owns it outright. If the house goes up for auction, the bank holding the note bids at least the amount owed, and they get the house unless someone else bids higher.

]]> By: Llama Money http://www.creditwithdrawal.com/wordpress/2008/04/03/what-does-the-proposed-housing-bill-do-to-help-the-us-subprime-mortgage-problems/comment-page-1/#comment-1632 Llama Money Tue, 08 Apr 2008 02:34:29 +0000 http://www.creditwithdrawal.com/2008/04/03/what-does-the-proposed-housing-bill-do-to-help-the-us-subprime-mortgage-problems/#comment-1632 I guess that makes some sense. Better to keep an existing neighborhood in decent shape and sacrifice the new neighborhood. I guess anyway. I'm certainly no real estate expert. Don't foreclosed homes usually end up on the auction block anyway, going to the highest bidder? <em><strong>Llama Money's last blog post..<a href='http://feeds.feedburner.com/~r/LlamaMoney/~3/265876249/' rel="nofollow">The Swimming Pool Dilemma</a></strong></em> I guess that makes some sense. Better to keep an existing neighborhood in decent shape and sacrifice the new neighborhood. I guess anyway. I’m certainly no real estate expert.

Don’t foreclosed homes usually end up on the auction block anyway, going to the highest bidder?

Llama Money’s last blog post..The Swimming Pool Dilemma

]]> By: Randall http://www.creditwithdrawal.com/wordpress/2008/04/03/what-does-the-proposed-housing-bill-do-to-help-the-us-subprime-mortgage-problems/comment-page-1/#comment-1631 Randall Mon, 07 Apr 2008 23:32:55 +0000 http://www.creditwithdrawal.com/2008/04/03/what-does-the-proposed-housing-bill-do-to-help-the-us-subprime-mortgage-problems/#comment-1631 @LLama, the idea is to get the foreclosed houses sold, so they don't pull down the price of surrounding houses. It can cause a domino effect, bringing down surrounding house prices, and causing those houses to not sell also. It's estimated that for each foreclosed house in an area, the surrounding house values drop by 3%. Get too many of those, and the whole neighborhood spirals down in price, then quality. @LLama, the idea is to get the foreclosed houses sold, so they don’t pull down the price of surrounding houses. It can cause a domino effect, bringing down surrounding house prices, and causing those houses to not sell also.

It’s estimated that for each foreclosed house in an area, the surrounding house values drop by 3%. Get too many of those, and the whole neighborhood spirals down in price, then quality.

]]> By: Llama Money http://www.creditwithdrawal.com/wordpress/2008/04/03/what-does-the-proposed-housing-bill-do-to-help-the-us-subprime-mortgage-problems/comment-page-1/#comment-1624 Llama Money Mon, 07 Apr 2008 17:14:52 +0000 http://www.creditwithdrawal.com/2008/04/03/what-does-the-proposed-housing-bill-do-to-help-the-us-subprime-mortgage-problems/#comment-1624 Looks like I misunderstood the $7k credit. Still, I don't understand the thinking behind it. Why should the government care if I buy a foreclosed property vs a shiny newly built house down the street? There must be something I'm missing here... <em><strong>Llama Money's last blog post..<a href='http://feeds.feedburner.com/~r/LlamaMoney/~3/263862078/' rel="nofollow">Dividends are a blast</a></strong></em> Looks like I misunderstood the $7k credit. Still, I don’t understand the thinking behind it. Why should the government care if I buy a foreclosed property vs a shiny newly built house down the street? There must be something I’m missing here…

Llama Money’s last blog post..Dividends are a blast

]]> By: Randall http://www.creditwithdrawal.com/wordpress/2008/04/03/what-does-the-proposed-housing-bill-do-to-help-the-us-subprime-mortgage-problems/comment-page-1/#comment-1593 Randall Thu, 03 Apr 2008 23:48:36 +0000 http://www.creditwithdrawal.com/2008/04/03/what-does-the-proposed-housing-bill-do-to-help-the-us-subprime-mortgage-problems/#comment-1593 @Llama, Enginerd is right. The $7k is for the NEXT BUYER of the foreclosed house. But even that sounds a little too good. Buy a house for a HUGE discount AND get the government to foot $7k in tax credits. It feels a little like taking advantage of the poor (stupid) souls that bought the big house and let it go back. The next guy gets quite a deal! @Llama, Enginerd is right. The $7k is for the NEXT BUYER of the foreclosed house. But even that sounds a little too good. Buy a house for a HUGE discount AND get the government to foot $7k in tax credits. It feels a little like taking advantage of the poor (stupid) souls that bought the big house and let it go back. The next guy gets quite a deal!

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