As of the time of this post, the new Housing Bill has only passed the senate and has not been signed into law. 

Many of you have seen blips about it in the media, some of you have probably even taken the time to read some of the 20 page summaries that explain how this is really about bailing out the Banks on Wall Street, and not helping the Homeowner on Main Street.  Anyone who has read into this knows that there is indeed a lot of fine print. ( Owners pledging future appreciation on their home to be paid to FHA in some circumstances )

Just received a call from a homeowner telling me that the government just forgave all prepayment penalties and loan balances over 90% of his home's value, etc. etc. etc. and wanted to know when he can receive a new FHA loan.  For anyone in trouble with their home or mortgage, I certainly sympathize.

What this homeowner, and I'm sure so many others missed is the most basic tenet of this Bill.

....That banks only have to allow this if it costs them less to forgive the balance and refinance the loan to a new FHA loan than it does to foreclose...

..... That homeowners without jobs or facing medical problems that keep them from making income are really not going to receive anything out of this...

.... waiving your right to borrow against the home in the future... not that anyone may be lending anyways, but still...

I could go on, and on.

 

For anyone in trouble with their home or mortgage, I certainly sympathize.  As a mortgage planner, as well as an owner of multiple homes, I've also personally seen my share of challenges in this marketplace.  I'm not against helping homeowners in need, I am a bit ambivalent about this new bill, though.

My Question is this, what similar experiences are you seeing that are being caused by selective coverage

 in the media?   What's your take on this new Housing Bill?  Helping Homeowners or Bailing out Banks?