July 24, 2008

The New Housing Bill Highlights

Although many Republicans were against Bush signing off on a tax payer bail out, Bush did sign. This is one of those things that has critics on both sides. Those who are for it feel it doesnt go far enough in helping the tsunami of foreclosures we will see through 2010. Those against it feel the tax payer gets to pay for the excesses of the industry and thats not the American way. We pay to play and when we lose we lose....

The Housing Bill Highlights:
  1. Relaxed lending standards will allow many owners to refi with lower cost Government owned mortgages. or renegotiate mortgages
  2. FHA gets 300 billion in new money
  3. Fannie Mae and Freddie Mac will get the financial supprot they need through a line of credit and maybe the US Govt will become an investor and by stock.
  4. Stricter controls over Freddie and Fannie. They own or guarantee more than 50% of all mortgages and when you get that big, mismanagement can sink the boat.
  5. Housing Tax Breaks: 15 billion for low income housing and mor
  6. Tax Credit: Up to $7500 for first time buyers who purchase between April 19, 2008 and July 1, 2009
  7. Foreclosure Counseling: $150 million to help owners headed for forcloesure. This money will provide for leagl services and for counseling.
The U.S. Senate is due to vote finally on Saturday to approve a major housing market rescue bill, including federal financial assistance for Fannie Mae and Freddie Mac. As of this writing, it has passed in committee paving the way for the final bill to become law. Well folks, its clear now that we will all own the problem. The Government is now the lender of last resort.

Thanks for Reading

Howard Bell
A web site of over 450 articles related to real estate focused primarily on property management.

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