The Washington times., 1934-05-19

Central Build
ing Company
has built IL
brick bungalows
and sold six of O''A ""Aet
them.
There are several secrets con-
nected with the building and sell
ing of the houses.
One of them is: Frank A.
Simon handles vhe sales and he
knows how. It is a good bet
that the down payments on the
houses are always substantial and
that the houses are built to sell
and stay sold.
The houses are sometimes re-
ferred to as apartment-type dwell
ings for the reason that they are
built on one elevation and are
compactly designed. Mr.. Simon
has been so successful in selling
these houses that some people re-
fer to them as Simon bungalows.
The houses sell for less than
$4,000.
And it is a strange and unusual
thing that the man who purchases
q modestly priced house always
has more money to place as a
down payment and is foreclosed
less frequently than his more pre-
tentious brothers who buy more
expensive houses on initial pay
ments barely sufficient to pay a
SaleSman'S commission.
And when hard times come the
man in the high-priced home soon
finds that falling values have
wiped out whatever equity he
might have had, and, accordingly,
he moves out, leaving the mort
gage men holding the bag"
On the other hand, the man in
the cheaper house, out Of job,
will call in his in-lawS and his
wife'S in-lawS to live with him and
help him keep up his payments.
Almost invariably he pays out and
then saves enough to perhaps buy
a small investment property or
two.
All of which is nothing but
the oft-repeated saying, told in
different words, that speculative
building ran much too wildly
during the good years and home
financing was not as soundly
arranged as it is now becoming
under Government tutelage with
its long-term mortgages and
gradual amortizations.
Frank j. LuchS is Sojourning
in Philadelphia over the week
end. It seems that Frank, who
attended the University of Penn
sylvania for two years before
he entered George Washington
University two years ago, has
had a longing to commune
with his old Schoolmates at
Penn once more before they
graduate.
RevisionS and expansions con-
templated in the Home Owners
Loan system which Congress has
been called upon to enact, but
which have not yet been en-
acted, have caused the various
branches of the Home Owners
Loan Corporation no end Of
trouble.
Apparently people think that
when President Roosevelt makes
a suggestion to Congress, that
Is all that is necessary and the
renovizing and m d rnizing
money is ready for the asking.
AS a result of this misappre-
hension on the part of the home
owning public the offices have
been deluged with applications for
that kind of loan. Accordingly
the corporation has sent out
printed circulars informing the
public as to who is eligible for
loans of the corporation. They
are enumerated as follows:
/. Those who have already
secured loans from the corpora
ton.
2. Those who are eligible to
have their mortgages taken over
by the corporation. (That is
to include a home owner finan-
cially unable to make payments
on his present mortgage, unable
to obtain financing elsewhere,
and actually faced with fore
closure or tax sale; the property
must be a dwelling for not more
than four families, worth not
more than $4,000, and must be
the owners homesteadD
3. Those who own their homes
clear of any mortgage, but only
if they cannot get loans from
any private lending agency.
So, until the proposed Ieg1sla-
ton passes Congress, that is the