(While this piece may be perceived as negative by some, it is meant as a pause for thoughtful consideration.)

     The idea of an $8,000 tax credit to assist folks into home ownership is about to expire.  There is talk of a new and improved tax credit of up to $15,000. Does this make sense?

    While home ownership overall is a good idea, it is not a good idea for all.  Some folks cannot afford to own a home.  Putting them in one is setting them up to fail.  Have we already forgotten the lessons being played out daily with the foreclosures across the nation?

    We have learned no-doc loans were a bad idea.  Even with documentation, giving someone an $8000 or $15000 tax credit is almost as bad in some cases.  While they will enjoy home ownership for 3-5 years, what happens next?

    Many have become enthusiastic believers in instant gratification.  It is a modern phenomenon due to our technological gains and the faster speeds we are all expect.  We believe this speed of life must apply to all aspects of our existence.  We all need to slow down and reconsider.

    Owning a home is a long-term proposition for most.  In the past two decades, many were enammored by the flipping process and used it for great personal gain.  This has all but stopped given our current housing market, with some poor souls left holding the bag.  They are suffering from the folly of get-rich-quick and worry about tomorrow when it comes.  Well good morning America, here we are again considering helping folks to go out farther on thin ice.

    My thoughts are to turn back the clock several decades to a time when you had money for the down payment and money in the bank before you asked for a mortgage.  This made the purchase of a home far less risky to the buyer and the lender.  It also resulted in far less foreclosures.

    We made this situation and we can work ourselves out of it.  It will take strong will and determination.  We must not forget the past lest we are doomed to repeat the same mistakes.  My call is to return to the basics, slow the speed of our lives down and enjoy our prosperity to the fullest.

     As always, call me at (210) 273-9082 with any questions, without obligation.