April 2, 2008

The Government has Stepped In!

There is a bill that is going to the senate today to assist those facing foreclosure.  The bill will include an incentive property tax deduction of $1000 for couples and $500 individuals.  This is suppose to help the 28.3 million taxpayers who do not itemize on there tax returns. 

The bill is also planned to give:

$10 billion to local housing agencies to refinance subprime loans and provide new mortgages for first time home buyers.  

$4 billion in grants for local governments to buy foreclosed properites.

$100 million to expand counseling for homeowners at risk of defaulting on thier loans.

The officials have stated that this new bill would cost taxpayers $15 to $20 billion.  This bill has been written to extend a helping hand to the many homeowners who are caught in bad mortgages. 

My question to my readers is should the government get involved?  And if so, how much?  Is it our governments job to counsel and financial support people that over extended themselves?  It's a tough situation, but we need the government to invest in more jobs, not more government departments.

It's time for the banks to take care of their own financial problems?  What do you think?