How ACORN hurts the poor

and scams the middle class. ACORN isn't the only non-profit accepting government money to put people in "affordable homes." They and others, including some well-meaning church groups, contributed to the sub-prime housing failure, which has its roots in the myth that "everyone deserves to own their own home," and the even bigger myth that homeownership is the key to wealth, and therefore banks need to look the other way if minorities or single parents or speculators apply. I've been a homeowner since 1962. We bought a duplex in Champaign, IL with my father's help (his grandmother helped him, and we've helped our children), and although it was a hassle being a landlord, it allowed us to afford something better and make a car payment a few years later. Even so, without his help, we would have done it eventually. But always with 20% down and no more than 1/3 of our income (a wife's income didn't count in the formula in the 1960s) in housing costs. Real income.

That's not how ACORN does it. There are very few foreclosures among people and banks who used the old rules. See the data on negative equity. Foreclosures are very high for no interest loans and accepting government benefits as income. Here's ACORN's website:

With AHC you get:

Lower down payments and closing costs.
No Private Mortage Insurance.
Banks generally require 3 months of mortgage payments in the bank at settlement, but
With our program, they don't, which allows you to buy a home sooner.
Most banks won't count public assistance or voluntarily child support in determining if you'll qualify for a mortgage, but
With our program, all steady income counts.

They are still using that failed formula, but now they are accepting government money to run foreclosure workshops to "help" the people they "helped" the first time around, even though it has been shown that most of those people will fail the second time around too. They really couldn't afford the home ACORN got for them, or didn't want the sacrifices necessary to own a home. But President Obama owes ACORN big time--and no one in his administration will stop this double and triple scamming.

There are many ways to make up that 3 months of mortgage payment in the bank to qualify for a decent bank mortgage--and believe me, you'll need that discipline if you want to be a homeowner--

give up smoking
stop eating out
give up manicures and hair weaves
give up the cell phones
drop your cable subsciption or go to basic-basic
go to the library for your movies
don't lease your furniture or car
learn a few fix-up skills and do your own work
put your family on a cash only budget

and I'm guessing this is not taught to wannabe home owners by ACORN because then the people wouldn't need the hand holding and would become strong and resilient.