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To: Ilaine who wrote (91210)	4/6/2001 6:50:22 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 436258

<<Homeowners get to live in better neighborhoods, send their kids to better schools, they have a stake in the community, build up wealth to pass on to their children.>> Benefits of home ownership notwithstanding, there are also benefits to maintaining higher savings and a more liquid "balance sheet"....especially as we enter a recessionary environment. Regarding your specific points: 1) Everyone has a stake in the community, whether they own, rent, or live in Luc's cardboard box. You might even make a case that the homeless person has the LARGEST stake in a stable community, as they are more likely to be victimized by "instability", ie, crime, than others. The homeless are certainly more aware of the quality and availability of public facilities and resources than the average homeowner. 2) Agree that homeowners get to live in better neighborhoods, but there may be an opportunity cost. Iif they are stretched financially and can't afford private or parochial schooling as a result, they may not necessarily send their kids to better schools. Or they may live in a community where access to good public schools does not depend on "neighborhood of residence", ie, magnet schools 3) If they are unable to keep the home because they've become overextended, there is no wealth to be passed on. Indeed, they may well lose the little equity they've built up. At the risk of sounding hard-hearted, the housing bubble will be as detrimental to society as the stock bubble was by the time it completes its implosion. There are vast differences in term of underwriting risk between the VA programs our parents benefitted from and the "no-money down" FNM loans of today. As a result, the VA loans paid for themselves, more or less, but the FNM debt burden will be carried by our generation of taxpayer/bagholders the rest of our lives. Regards Patron

To: Ilaine who wrote (91210)	4/6/2001 8:08:57 PM
From: Les H	Read Replies (2) \| Respond to of 436258

There's also a substantial downside with subsidizing home ownership for people who make no or little downpayment and have substantially no savings as a safety net. They have to pay many of the costs of home ownership without the benefits of deducting costs such as association fees, maintenance, depreciation, etc. which their landlord would typically deduct. In many cases, they already pay little or no taxes and get little benefit from the mortgage interest deduction. They're better off if they can work on maintaining a reasonable savings plan as a safety net first. I knew of a real estate brokers and investors who used to act as vulture lenders to these distressed homeowners, many on the last legs of their VA or VHDA loans. No computer job ads in today's Washington Post. I saw a marriage proposal by someone with a green card trying to marry to stay in the country.

To: Ilaine who wrote (91210)	4/7/2001 9:00:28 AM
From: flatsville	Read Replies (1) \| Respond to of 436258

After all, they'll just wind up living in Section 8 housing, which will cost more to the taxpayer. Those who qualify for no or low down payment low income home loans are not the same people who would qualify for Section 8 housing. Check the income levels for both programs and you'll see what I mean. Besides there are less and less Section 8 designated units and fewer vouchers yoy. The Section 8 program has a waiting list. It can take years for a new applicant to move to the top unless for example you're a low income battered woman who successfully completes a program for abused women while staying in a homeless shelter...then you might get fast-tracked to the top of the list...might...or you have a severely disabled child whose condition is aggrivated by current housing conditions...again might... You seem to think there are blocks and blocks of vacant Section 8 housing or reams of blank vouchers available if low income buyers default on their homes...simply not true.