Feedback Regarding the AmeriDream Article

Dear Editor of News Blaze,

"During Homeownership Month HUD Proposes a Rule That Would Eliminate Homeownership for 100,000 Homebuyers Annually," June 16, 2008, http://newsblaze.com/story/2008061614230500004.pnw/topstory.html
This article is, (or appears to be a darn close imitation of), a press release to push Ameri Dream, the sponsor of the article noted at the bottom. Some down payment assistance programs even claim to be a "charity," but are not what they appear to be. The Internal Revenue Service called some of them a scam: www.irs.gov/newsroom/article/0,,id=156675,00.html (IRS Targets Down-Payment-Assistance Scams; Seller-Funded Programs Do Not Qualify As Tax Exempt, IR-2006-74, May 4, 2006)

The U.S. Dept of Housing and Urban Development (HUD) has tried to eliminate the scheme because it results in increased foreclosures which HUD pays for. It insures FHA loans often used to purchase houses including those with so-called down payment "gifts." Other news articles debating the pros and cons of these "gifts" have compared them to money-laundering. It is just one more way to sell houses, whether or not the buyer can afford it, whether or not the loan is legitimate.

The fact is, homeownership is not right for everyone. What good is it to put people in a home they can't afford to KEEP? This is not a worthy cause and it's not altruism; this is a for-profit venture that benefits builders and sellers, so they can make the sale. Their partners in down payment assistance are set up to help make sure the sale happens. It's often a con job. Many families who thought they were going to live the so-called "American Dream of Homeownership" lost their houses and are worse off than ever, while the con men moved on, keeping their profits.

Sincerely,
Cindy Schnackel
National Secretary, Homeowners Against Deficient Dwellings
www.hadd.com

judythpiazza@newsblaze.com