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Pasco Talks Market Revival

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By CARL ORTH

Suncoast News

Published: October 5, 2008

NEW PORT RICHEY - The choices might be coming down to slim and none.

That's what Pasco County leaders and residents are saying about alternatives to a $700 billion federal government bailout plan for financial institutions wracked by foreclosures and other bad debts. Congress approved the bailout Friday.
Greg Armstrong sees more and more foreclosure filings each month as president of West Pasco Board of Realtors.

A severe cash crunch means virtually no money for lending right now, Armstrong said. Home prices continue to drift downward. Home sales aren't perking up very much yet. About the only home loans available now use FHA financing, which has much stricter requirements.

Essentially, no capital investments are available for businesses either.

"It's disgusting to have to do it," Armstrong said of the government bailout. "But we have no choice."

Armstrong said the plan approved and signed by the president offers more safeguards for taxpayers than the version the House of Representatives shot down Monday.

Armstrong is leading a delegation of local real estate leaders to present a plan to Pasco County commissioners at their Tuesday meeting.

The county could qualify for about $19.6 million in federal help through the restructuring of Fannie Mae and Freddie Mac by the federal government, Armstrong said.

The county could directly purchase foreclosed properties and then try to sell them, he said. But then the county would be competing with private real estate firms. Such a plan also would lead to more foreclosed homes being converted into rentals, Armstrong said.

Instead, Pasco real estate leaders are suggesting funneling federal help into the existing SHIP program, which provides low-interest or no-interest loans to first-time home buyers who would take over foreclosed homes. Teachers, firefighters, health care workers and other "critical services" workers would qualify for extra help to buy foreclosed homes.

"It will help stabilize the prices" of homes and prevent more rentals, Armstrong said.

Meanwhile, a self-professed government watchdog is angry about the Wall Street meltdown and bailout.

"Once again the responsible, hard-working families will foot the bill for the greedy and the irresponsible," said Paul Van Schaick, editor of the Pasco-based Web site www.watchdogflorida.com.

"I prefer no bailout. However, that would hurt all the millions who have been playing by the rules," Van Schaick said.

"There has to be a common-sense approach to the oversight of corporate leadership as they share the same lack of personal responsibility as anyone else. If the plan does work - at best - our standard of living will go down for years to come, and if the plan does not work we could encounter a depression.

"I particularly like that the federal deposit insurance limit is being raised" to $250,000, Van Schaick said. "I also like that the energy tax credit will be extended. My view is that we need to pull out all of the stops with energy.

"We need the public to save more and spend less.

"There are other components in the bill I like such as tax cuts, but then I wonder where all this money is coming from since we were broke to begin with prior to this crisis?"

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