Originally Posted by california rick
California has a program where some properties that are foreclosed on can receive points down on the interest rate for first-time buyers. The monies to pay for those points down is floated by bonds by the State.

The theory is to stimulate first-time home buying interest - not investor interest.

It doesn't have anything to do with the buyer's classification, california rick. It has to do with government induced misallocation of 'money' resulting in an artificially created higher demand for whatever the government is pushing at the time. Politicians hype real estate and legislate incentives at all levels because it is a basic industry that creates tons of jobs, provides mucho tax pickings, mega votes, mega campaign contributions, sweetheart deals for themselves (ask Obama;-)), lotsa profitable corruption opportunities, etc. Everybody wins -- until it comes time to pay the piper.

Unfortunately, the downside of these government-induced distortions inevitably result in a bubble that does nasty things to a lot of people when it pops and deflates.

You, as a prospective buyer, are a current beneficiary of that cyle by dint of getting in after the "pop" when prices began to fall (and may continue to fall). Please do not misconstrue what I am saying. If there are legitimate programs being offered for which you qualify and which would benefit you, it simply makes since for you to use them because that is the way the gaming table for home purchasing is currently arranged.
Yours,
Issodhos

Last edited by issodhos; 08/16/08 03:29 PM.
"When all has been said that can be said, and all has been done that can be done, there will be poetry";-) -- Issodhos