San Bernadino supports downpayment scams

[tickets]

IRS calls seller funded down payment assistance providers scams

http://www.irs.gov/newsroom/article/0,,id=156675,00.html

but San Bernadino county government supports them

http://www.supportdownpaymentassistance.org/Documents/SanBern-CA-Resolution.pdf

on top of this, is the best time to be encouraging low income San Bernadino residents to take out mortgages with LTVs over 100%?

[powayseller]

Why is the IRS against giving these companies charity status?

I agree that governments should not subsdidize housing. They would be buying at the top of the market, kind of like their pensions funds bought tech stocks in 2000. They should persuade people to never borrow more than 80% of the house. This goes to show the government ideas are not always in our best interest.

[Author]

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