With 2008 being an election year, many Americans are focused on what solutions presumptive nominees from the Democratic and Republican party plan to do with the fledgling real estate market. Both candidates Barack Obama and John McCain believe in decisive action and will commit funds in hopes of reversing downward trends, here's what they are planning.
Barack Obama is going to commit $10 billion dollars to assist foreclosure-bound homes in hopes of preventing further price decline and boosting sales in the real estate market. Obama will also adjust foreclosure contracts to make them have practical mortgage payments and interest rates. Obama is interested in further regulation of the credit industry to prevent poor lending practices in the future. Critics claim that Obama's plan to deviate from the Bush tax cuts will add unneeded pressure on Americans and hurt consumer spending.
John McCain also plans to commit $10 billion dollars to assist the fledgling housing market by giving distressed homeowners the option to opt out of their adjustable rate mortgages (ARM) in exchange for flat rate mortgages. McCain is also planning on continuing the Bush tax cuts and instating new tax cuts to boost the economy through consumerism. Additionally, McCain will supply support to banks in an effort to stabilize the economy. Critics say McCain's plan resembles Bush's failed plans too closely and that more tax cuts will just increase deficit in the Federal Government.
Obama and McCain have clearly distinctive plans and different views on how the housing market will be revived. What both candidates have in common is their willingness to take immediate action to quell the damaging effects of falling home values and low sales in real estate. This comes as a breath of fresh air to homeowners across the U.S. who are looking to see the real estate market return to normalcy. Nonetheless America has a decision to make, who do you think has the better plan?
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