Listening to President Bush's last State of the Union address, he was prepared for the topic of foreclosures and home ownership because every day in the media those remain very "HOT" topics. He did address that topic because so many people are affected. If you do some research you will find out that the House approved two measures this past Tuesday, which are designed to boost the ailing housing market as part of the economic stimulus package.
This is one of those times where there does not appear to be a light at the end of the tunnel. The House approved this measure but it seems they were under pressure from the Bush administration and the lawmakers limited the duration of one of the measurers. Apparently the plan raises the maximum size of mortgages Fannie Mae and Freddie Mac can buy from $417,000 to as high as $729,750 in expensive parts of the country. The proposed increase would expire at the end of the year. The House also passed a stimulus bill that increases the size of Federal Housing Administration backed loans from $352,790 to as high as $729,750 in expensive areas until year-end allowing more borrowers with weak credit to refinance into federally insured loans.
All the different solutions that are out there will eliminate a lot of the people that were really in trouble and needed the help. For example, one of the solutions talked about they could not have been late on a payment in order to apply for assistance. Well, given the current state of the housing market if they had not been late on a payment why are they receiving additional options for their mortgage. They are not the ones that need it.
Keep watching to see how these changes take effect and can help you if needed.
Comments(2)