musicman Posted February 24, 2009 Share Posted February 24, 2009 Houston taxpayers could start footing the bill to help first-time homebuyers pay off debts and improve their credit scores, under a proposal before City Council this week.The Link to comment Share on other sites More sharing options...
Ducks Posted February 24, 2009 Share Posted February 24, 2009 Houston taxpayers could start footing the bill to help first-time homebuyers pay off debts and improve their credit scores, under a proposal before City Council this week.The "Credit Score Enhancement Program" will give up to $3,000 in grants to individuals who are trying to qualify for mortgages through the city's homebuyers assistance program. City officials say some applicants fall short of eligibility by only 10 or 20 points on their credit scores, and paying off some debt balances can quickly improve their numbers.The proposal has aroused critics who say the city should not use public funds to help people pay down car loans, credit card balances, or other debts Link to comment Share on other sites More sharing options...
20thStDad Posted February 24, 2009 Share Posted February 24, 2009 Did we not just learn the lesson that if you don't really qualify to buy a house, you shouldn't be allowed to do it? FAIL Link to comment Share on other sites More sharing options...
dbigtex56 Posted February 24, 2009 Share Posted February 24, 2009 In typical Chronicle fashion, the article leaves gaping holes and unanswered questions. Surely, someone must have proposed this plan, or it wouldn't be under discussion by city council. Whose bright idea is this, anyway? Shouldn't that person have been identified, and given a chance to explain whatever reasons they had for doing so?Such nit-picky details might come in handy, especially at election time. Link to comment Share on other sites More sharing options...
sevfiv Posted February 24, 2009 Share Posted February 24, 2009 If your credit score isn't great (and you have some credit history), it's probably because you have derogatory account(s), make late payments, or have a high debt to credit ratio. Maybe not the best time to buy a home.. Link to comment Share on other sites More sharing options...
flipper Posted February 24, 2009 Share Posted February 24, 2009 You people are obviously capitalistic pigs. In America, everyone has the right to own a home, even if they cannot afford it. Stop being so stingy, and let's spread the wealth. flipper Link to comment Share on other sites More sharing options...
dbigtex56 Posted February 24, 2009 Share Posted February 24, 2009 You people are obviously capitalistic pigs. In America, everyone has the right to own a home, even if they cannot afford it. Stop being so stingy, and let's spread the wealth. flipper You have a point. How else, in this market, are people going to flip houses? Link to comment Share on other sites More sharing options...
flipper Posted February 24, 2009 Share Posted February 24, 2009 This proposal should be dead by dinner. It's even on drudge.flipper Link to comment Share on other sites More sharing options...
marmer Posted February 24, 2009 Share Posted February 24, 2009 Yeah, well, I have way too little faith in the accuracy of credit reporting and in the credit business in general to be willing to just write this off as a bad idea. I remember refinancing my house back in the early 90s and I had zero outstanding debts except for one disputed insurance claim for a coupla hundred dollars. The dispute was in the midst of the insurance company's resolution process but the lender didn't care. I was told to pay it off, or no loan. So even though I stood a pretty good chance of eventually winning my case, I basically had to pay it off out of pocket. It's not too hard for me to see perfectly reasonable similar situations where a modest amount of city help would be valuable.And all those foreclosures? I'm sure that many of those people could well have afforded a house. Just not the one some lender approved them for.I am not so very much comfortable with the idea that large numbers of our working population will never be able to afford even a small house. I would hate to see that concept gain further traction in our society. Especially as unemployment is soaring.How is this so very different from subsidized housing, except that there's a good possibility of increased tax revenues from all these new homeowners? Link to comment Share on other sites More sharing options...
sevfiv Posted February 24, 2009 Share Posted February 24, 2009 Unfortunately, like others have mentioned, the Chronicle leaves out a lot (including a source to see the text of this proposal). The article mentions "The proposal has aroused critics who say the city should not use public funds to help people pay down car loans, credit card balances, or other debts" - specifically highlighting credit cards and cars, even if the "other debts" make up some portion of what this is going toward. But who really knows..This is all I could find so far, from the City Council agenda:21. ORDINANCE deappropriating $444,064.90 from the TIRZ Affordable Housing Fund 2409 (Fund 2409) under Ordinance No. 2008-828 for the Temporary Emergency Home Repair Program (“TEHRP”) in connection with Hurricane Ike Damage; approving and authorizing guidelines for a New Credit Score Enhancement Program; reappropriating $386,390.00 from Fund 2409 to a New Credit Score Enhancement Program, including delivery costs; and reappropriating $57,674.90 to the TEHRP for Project Delivery Costs Link to comment Share on other sites More sharing options...
KatieDidIt Posted February 24, 2009 Share Posted February 24, 2009 That should be an angry red face, but I'll take what I can get. Link to comment Share on other sites More sharing options...
banking214 Posted February 24, 2009 Share Posted February 24, 2009 Glad the mayor has dropped this from tomorrows agenda. Such an embarrasement and a waste of money.Thoughts?http://www.chron.com/disp/story.mpl/front/6277344.html Link to comment Share on other sites More sharing options...
sevfiv Posted February 24, 2009 Share Posted February 24, 2009 Topics combined Link to comment Share on other sites More sharing options...
flipper Posted February 24, 2009 Share Posted February 24, 2009 Just like I said, dead by dinner.flipper Link to comment Share on other sites More sharing options...
Heightsite Posted February 26, 2009 Share Posted February 26, 2009 In typical Chronicle fashion, the article leaves gaping holes and unanswered questions. Surely, someone must have proposed this plan, or it wouldn't be under discussion by city council. Whose bright idea is this, anyway? Shouldn't that person have been identified, and given a chance to explain whatever reasons they had for doing so?Such nit-picky details might come in handy, especially at election time.So, how do you find out who put this proposed plan on the agenda? BigTex has a great point come election time... Link to comment Share on other sites More sharing options...
crunchtastic Posted February 26, 2009 Share Posted February 26, 2009 Isn't it the case that the mayor's office sets the agenda? I bet White told his people to come up with an idea to spend that money, and some well meaning but politically ignorant staffer came up with the idea. (with the help of his or her contacts at some local non profit) Link to comment Share on other sites More sharing options...
marmer Posted February 26, 2009 Share Posted February 26, 2009 Isn't it the case that the mayor's office sets the agenda? I bet White told his people to come up with an idea to spend that money, and some well meaning but politically ignorant staffer came up with the idea. (with the help of his or her contacts at some local non profit)Well, what I'm hearing is that the credit crunch is a result of the pendulum swinging back the other way too hard and that sort of "everyday" mortgages and car notes are way much harder to get. If we're talking about modest government assistance to get good-risk people out of a short-term bind, especially one that may not be of their own making, then I don't see that as significantly different from the spirit of other government housing assistance. Especially since the city doesn't control the banks or the lending rules, but this is something they can control. Link to comment Share on other sites More sharing options...
flipper Posted February 26, 2009 Share Posted February 26, 2009 If we're talking about modest government assistance to get good-risk people out of a short-term bind, especially one that may not be of their own making, then I don't see that as significantly different from the spirit of other government housing assistance.How is consumer debt like credit cards and car debt not of their own making?flipper Link to comment Share on other sites More sharing options...
travelguy_73 Posted February 26, 2009 Share Posted February 26, 2009 Housing Director Richard S. Celli said that the plan would only have been able to help applicants pay off installment debt like student loans, and not revolving debts, such as credit cards. Link to comment Share on other sites More sharing options...
marmer Posted February 26, 2009 Share Posted February 26, 2009 How is consumer debt like credit cards and car debt not of their own making?flipperEmergency car repairs, emergency medical costs, Ike-related expenses, school-related expenses.School clothes for kids, hell, for that matter, food for the family or prescription drugs.I've put a great many things on my credit cards that I hadn't planned to and were in no way "luxuries." And paid them off as quickly as I can, every time, just like it's supposed to work. I think a lot of people when they hear "credit card debt" they think "irresponsible spending." In the same way when they hear "car note" they think "Why do THEY need a new car?"It very well might NOT be a new car. It might be a car they need to get to or do their job.If a couple thousand dollars credit card debt is all that's standing in the way of someone being able to get a home loan which they are otherwise perfectly capable of making the payments on, then I don't see city help with that as a bad thing. Sure, you can say they should just pay it off, but on the other hand when you buy a house everyone has their hand out for a grand up front here and there. Are you going to say that if someone meets relatively conservative income to mortgage figures but has a few thousand on their credit cards they shouldn't be able to own a house? When their neighbor with the same house and same income can have the same credit card debt amount, incurred _after_ the closing and no one sees that as an issue?I really think it was the city's attempt to ease what it saw as overly restrictive lending in a fairly low-key and fiscally responsible way. Not a way to bail out deadbeats who should never even be close to qualifying for a loan. Link to comment Share on other sites More sharing options...
musicman Posted February 26, 2009 Author Share Posted February 26, 2009 The $444,000 proposed for the program was leftover money from a $1.5 million appropriation the city made for emergency home and roof repairs after Hurricane Ike.There are plenty of home owners who can still use the money for its intended purpose. Link to comment Share on other sites More sharing options...
flipper Posted February 26, 2009 Share Posted February 26, 2009 Emergency car repairs, emergency medical costs, Ike-related expenses, school-related expenses.School clothes for kids, hell, for that matter, food for the family or prescription drugs.I've put a great many things on my credit cards that I hadn't planned to and were in no way "luxuries." And paid them off as quickly as I can, every time, just like it's supposed to work. I think a lot of people when they hear "credit card debt" they think "irresponsible spending." In the same way when they hear "car note" they think "Why do THEY need a new car?"It very well might NOT be a new car. It might be a car they need to get to or do their job.If a couple thousand dollars credit card debt is all that's standing in the way of someone being able to get a home loan which they are otherwise perfectly capable of making the payments on, then I don't see city help with that as a bad thing. Sure, you can say they should just pay it off, but on the other hand when you buy a house everyone has their hand out for a grand up front here and there. Are you going to say that if someone meets relatively conservative income to mortgage figures but has a few thousand on their credit cards they shouldn't be able to own a house? When their neighbor with the same house and same income can have the same credit card debt amount, incurred _after_ the closing and no one sees that as an issue?I really think it was the city's attempt to ease what it saw as overly restrictive lending in a fairly low-key and fiscally responsible way. Not a way to bail out deadbeats who should never even be close to qualifying for a loan.If someone doesn't have enough cash saved up for an emergency car repair or medical bill (and if you can't afford health insurance premiums how can you afford a mortgage) they don't have any business buying a house. Plain and simple. Houses are not a blessing to broke people. AC's die. Toilets break. Sewer lines clog. Light fixtures crap out. People who cannot afford these emergencies often end up in foreclosure because they were just squeaking by to begin with. Either that or they end up filing bankruptcy over 5k in credit card bills. Putting something on a credit card is not affording it. It's financing it and it's a shame that Americans have been sucked into a never ending pit of consumer debt because it's "normal" in today's society.flipper Link to comment Share on other sites More sharing options...
Heightsite Posted February 26, 2009 Share Posted February 26, 2009 The agenda item was prepared by the Housing and Community Development Department. Link to comment Share on other sites More sharing options...
20thStDad Posted February 27, 2009 Share Posted February 27, 2009 Mayor White takes the blame for this. Story goes away.link Link to comment Share on other sites More sharing options...
flipper Posted February 28, 2009 Share Posted February 28, 2009 Mayor White takes the blame for this. Story goes away.linkI can already see the negative tv ads when he runs for gubnor.flipper Link to comment Share on other sites More sharing options...
musicman Posted February 28, 2009 Author Share Posted February 28, 2009 I can already see the negative tv ads when he runs for gubnor.flipperit's called stupidity Link to comment Share on other sites More sharing options...
sidegate Posted February 28, 2009 Share Posted February 28, 2009 Mayor White takes the blame for this. Story goes away.linkThis was my favourite quote.....I didn Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.