Down Payment Assistance: Can It Bring Home Sales Back?

Here is an article about trying to bring back down payment assistant programs.  I would agree that this would help to spur sales but many forget the high default rate that these programs had.  Down payment assistance is where the seller gives a portion of money to a non-profit organization for a small fee and afterwards the money is given to the buyer to help with the down payment.  It can result in no money out of pocket on a purchase.  This program is typically used with an FHA loan. 

http://online.wsj.com/article/SB123248854262799609.html