The housing bubble and the mortgage crisis in the country is the result of greedy bankers taking advantage of a deregulated system, and mis-informed, mis-guided and over-leveraged society who believes more is better. Many people got sucked into buying homes they could not have possibly afforded, during a time when interest rates where not “real” (AKA, the ARMs and Zero down payments) the 2006 homebuyers bought into the idea of being able to buy a home without fully being aware of consequences; mortgage brokers took advantage of this, and made LOTS of money (which by the way, they are still making money, despite the fallen rates and home costs).

The first time buyers credit allows the opportunity for someone like me to finally be able to enter the housing market. It is unfortunate that it is on the backs of other others who have lost jobs, whose houses have lost equity, who can’t make their monthly payments. Extending a credit to save the those who have fallen prey to the consequences of greedy brokers and mis information is not what should be done. The mortgage companies and banks need to work harder to renegotiate those “bad loans” and re-evaluate whether these folks where ready home owners.

Hibryd, I agree that low housing prices are treated as an apocalypse when really it’s a boon for folks who need shelter. I disagree that the folks who bought a home in 2006 and have now lost their job might not need a little help.

Cynthia, congrats again on the big move!

Bonus points for the Sophie reference (that’s the giraffe’s name btw).

This is a hideous idea. Prices are too high right now in the Bay Area specifically because there’s a severe shortage of REOs on the market. We need more of them for sale, not fewer.

” ‘What about moral hazard?’ the suddenly Scroogey capitalists will argue. We say that these home-buyers have been through enough hazard.”

But they’ve enjoyed living in a home, a real home, over the last few years. I didn’t buy in 2006. I did the responsible thing and worked extra jobs and saved like mad and have spent those last three years in a small, crappy apartment JUST so that I could one day buy a home worth living in. I guess I should have bought after all – then people like you would be calling me a victim and lobbying to help me, and I could have had those pets and a grill and a garden and everything else I’ve wanted all these years. As it is you’re lobbying to use my tax dollars to “save” the homes of people who have more than I do.

You want to help home buyers and bring stability to the market? Let’s get this wave of foreclosures over with and let things return to an affordable normal.

I was of the mind that the proposed expansion would meet this idea to a degree; assuming people can find a buyer willing to pay the inflated prices of those days. But on second thought …

We’re moving up and would (luckily?) qualify under the proposal, but breaking even on the former property is a long shot. Instead of creating a property for first-time homebuyers — thus perpetuating the cycle, we’re adding another rental to the mix as we wait for the market to go back up.

We made a decision to move before all this went down, but would we have done it because of the credit? Probably not. But we would have applauded a bubble-buyer credit.