H.R.600 - To revise the requirements for seller-financed downpayments for mortgages for single-family housing insured by the Secretary of Sponsor: Al Green / 111th Congress

Title
111th Congress - To revise the requirements for seller-financed downpayments for mortgages for single-family housing insured by the Secretary of Housing and Urban Development under title II of the National Housing Act. hidemore...
Summary
To revise the requirements for seller-financed downpayments for mortgages for single-family housing insured by the Secretary of Housing and Urban Development under title II of the National Housing Act. (by CRS)
Status
The bill has been introduced.

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DPA Seller-Financed Loans Reinstated Too Soon? by Lauren Christensen, Feb 5, 2009 (8:28pm)

H.R. 600 aims to reinstate DPA seller-financed downpayments for single-family housing mortgages. The DPA was dissolved last October as part of the Reform Act because of evidence that showed home buyers who used seller-finiaced downpayments were not as informed about their mortgage responsibilities as those who had to finance their own downpaymennts, and thus were more likely to default on their loans. However, supporters of this bill claim that the influx of vacant and forclosed homes that resulted from this crisis has left a vacuum in the housing market and actually made it a great time to invest in real estate. By reinstating the DPA temporarily, low-income housing supporters like AmeriDream and the Nehemiah Corporation believe that thousands of families could take advantage of the depressed housing prices and reenter the hosing market. They also claim that this can be done without any increase in taxpayer funding.

While the logic behind this argument makes sense, it is still very early in the economic recovery process, and not exactly clear what the outcome of this legislation might be. The last thing that the American economy needs is to implement loan procedures too soon and fall into further debt.

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