1
 This is in response to George Melloan's Business World column The Housing Market Is a Bigger Mess
5001
span

2
 Than You Think
1
comparison-e

3
 (op-ed page, Sept. 26).
5001
elaboration-additional

4
 In Houston, we have seen
5
attribution

5
 how bad the housing problem can become.
5003
span

6
 Unused houses deteriorate rapidly,
5004
span

7
 affecting the value of nearby homes;
6
consequence-s

8
 in a domino effect, the entire neighborhood can fall victim.
5004
hypothetical

9
 At this stage some people just walk away from homes 
5006
span

10
where the mortgage exceeds current market value.
9
elaboration-object-attribute-e

11
 But most of them could have afforded to keep up their payments
5007
Contrast

12
 -- they chose not to do so.
5007
Contrast

13
 The problem is so vast
5012
reason

14
 that we need to try innovative solutions 
5012
span

15
-- in small-scale experiments.
14
elaboration-object-attribute-e

16
 Here are some ideas:
5028
span

17
 1) Foreclosed homes could be sold by the FHA for no down payment
5015
span

18
 (the biggest obstacle to young buyers),
17
elaboration-additional-e

19
 but with personal liability for the mortgage 
5014
span

20
(no walking away by choice).
19
restatement-e

21
 2) Encourage long-term occupancy 
5024
span

22
by forgiving one month's payment
5017
span

23
 (off the tail end of the mortgage)
22
elaboration-additional-e

24
 for every six months paid;
5018
Same-Unit

25
 or perhaps have the down payment deferred to the end of the mortgage 
5019
span

26
(balloon),
25
elaboration-additional-e

27
 but forgiven on a monthly pro-rata basis
5020
List

28
 as long as the owner remains the occupant.
5022
condition

29
 3) Develop rental agreements with exclusive purchase options for the renter.
5025
span

30
 An occupant will, in most every case, be better for the home and neighborhood than a vacant house.
29
evaluation-s

31
 In this way, the house is not dumped on to a glutted market.
5025
consequence-s

32
 John F. Merrill
5030
List

33
 Houston 
5030
List

34
 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock
5036
span

35
 by buying in to their foreclosed properties 
5032
span

36
(of which there are, alas, many)
35
elaboration-additional-e

37
 at an inflated balance due 
5033
span

38
-- say $80,000 on a house worth $55,000 --
37
elaboration-additional-e

39
 instead of allowing a free market to price the house 
5031
span

40
for what it's really worth.
39
elaboration-object-attribute-e

41
 Worse, the properties then sit around
5037
span

42
 deteriorating for maybe a year or so,
41
elaboration-object-attribute-e

43
 but are resold eventually 
5038
span

44
(because of the attractiveness of the low down payment, etc.)
43
explanation-argumentative-e

45
 to a marginal buyer 
5039
span

46
who can't afford both the mortgage and needed repairs;
45
elaboration-object-attribute-e

47
 and having little vested interest
48
circumstance

48
 that buyer will walk away 
5041
span

49
and the vicious cycle repeats itself all over again.
5042
span

50
 Paul Padget 
5045
List

51
 Cincinnati
5045
List

5001
span
5002
span

5002
span
5049
span

5003
span
5010
span

5004
span
5005
span

5005
span
5009
span

5006
span
5008
span

5007
multinuc
5006
elaboration-additional

5008
span
5005
elaboration-additional

5009
span
5003
evidence

5010
span
5029
Problem-Solution

5011
span
5013
span

5012
span
5011
span

5013
span
5029
Problem-Solution

5014
span
5016
Same-Unit

5015
span
5016
Same-Unit

5016
multinuc
5027
List

5017
span
5018
Same-Unit

5018
multinuc
5022
List

5019
span
5020
List

5020
multinuc
5022
List

5021
span



5022
multinuc
5023
span

5023
span
21
means

5024
span
5027
List

5025
span
5026
span

5026
span
5027
List

5027
multinuc
16
elaboration-set-member

5028
span
5011
elaboration-additional

5029
multinuc
5047
TextualOrganization
Text
5030
multinuc
5047
TextualOrganization
Signature-Block
5031
span
5034
antithesis

5032
span
5034
Same-Unit

5033
span
5034
Same-Unit

5034
multinuc
5035
span

5035
span
34
explanation-argumentative

5036
span
5044
span

5037
span
5043
Sequence

5038
span
5040
Same-Unit

5039
span
5040
Same-Unit

5040
multinuc
5043
Sequence

5041
span
49
result

5042
span
5043
Sequence

5043
multinuc
5036
elaboration-additional

5044
span
5046
TextualOrganization
Text
5045
multinuc
5046
TextualOrganization
Signature-Block
5046
multinuc
5048
List

5047
multinuc
5048
List

5048
multinuc
5002
elaboration-set-member

5049
span



