Subprime: Here We Go All Over Again

Caught the news on Channel 8 last night — felt so good to be out of prison my kitchen at long last. I watched the segment on communities trying to stem the rise in foreclosures which have hit Arlington and southwest Dallas particularly hard this year —- about 100 Arlington families per month lose their homes to foreclosure. Arlington will pull federal grant money and offer buying assistance ranging from $15,000 to $40,000 — that assistance being for things like closing costs, down payments, fixing up the house since most foreclosures are fixer-uppers. With me so far? This is called a Neighborhood Stabilization Program,  “financial assistance”, but it’s not clear if that assistance is a hand-out or a loan. Not clear who qualifies or how to apply, though the report said more info will be provided at the Bob Duncan Center this Thursday. Said most of the foreclosed homes sell at a 5% to 15% discount — no duh, they are foreclosures. But here’s my beef: one family was house-hunting for a foreclosed home:

“We’re, as it is, struggling now from paycheck to paycheck just to make sure ends meet,” she said. “So, that would be great, a perfect idea.”

Doesn’t sound like a perfect idea to me. Sounds like how we got into this mess. Sounds like someone who probably ought to put home buying on hold, save some money, rent and buy when they are not struggling from paycheck to paycheck.

Or are we looking at the next family to have a home foreclosed in Arlington?�