OfflineThe FHA could insure $300 billion in such mortgages, which would be available to homeowners who showed they could afford a new loan. Banks would first have to agree to take a large loss on the existing loans in exchange for avoiding an often-costly foreclosure.
It goes far beyond addressing the current crisis, however.
The legislation overhauls the Depression-era FHA. It requires lenders to show how high a borrower's payment could get under the terms of his mortgage. It provides $180 million in pre-foreclosure counseling for struggling homeowners.
These are just some sections of the news on the signing of the bill by President Bush.
The following is my favorite part:
Conservative Republicans were vehemently opposed to the bill, particularly the help for Fannie Mae and Freddie Mac. Critics charge the companies enjoy lavish profits in good times and wield their outsized political clout to resist regulation while depending on the government to bail them out should they falter.
I am not sure what this will do to the investor, but I guess it will slow things down and make things more competative; as if it wasn't competative enough already!
What are your views on how this will pan out? I look forward to hearing from you.
Deb
Believe it or not!!!! In the North West Corner of Iowa the real-estate market has NOT been heavily impacted like the rest of the nation.... meaning we do not have tons of foreclosures, short-sales, sheriff sales or empty properties sitting around. We have the usual property here and there spread out between multiple different communities. Now, Sioux City and Sioux Falls have more and more of these happening but that is an hour drive from here
But I am sure this government bailout will have some impact, nevertheless, even though the gov should not cause an even greater deficit.
Regards,
DeJor Properties, LLC
I think the government needs to stay out of this. The government getting involved in private enterprise has never been a good solution. The real estate market needs to correct itself. Bankers and home buyers made some bad decisions. They need to take responsibility for those decisions, and not rely on taxpayers to bail them out. Maybe the government needs to improve the education system, so that bankers and home buyers make more intellegent decisions.
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
BUT, be that as it may, I guess we don't have much control over the government (except putting in our 2 cents when we can. And should!). We'll just have to watch as investors, and renew our strategies with the changes that come. Remember, there's money to be made with WHATEVER is happening in the market. Maybe this will force a strategy that no one has thought of yet. (Or possibly Dean's all over it already.
)
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
People will always need a place to live. We will find a way to deal with whatever they throw at us, and make a profit at it. We will just need to "Think A Little Differently".
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw