I just received an email from the National Association of Realtors asking me to send a message to my elected officials urging them to pass the Emergency Economic Stimulus Act, with an explanation of what is at stake for us. Here is the explanation.
There are several aspects of this Stimulus Package that I didn't understand before reading the summary from NAR. These include:
"All federal agencies are required to work with servicers to facilitate loan modifications that will consider the net present value of the mortgage."
"Similar refinancing and foreclosure prevention requirements apply to mortgages involving owners of multi-family properties. Policy goal is to assure that tenants don't lose their residence when an owner has problems with the mortgage."
"Creation of a Troubled Asset Relief Program (TARP) to purchase and guarantee the troubled assets from the financial institutions that hold mortgages and/or mortgage-backed securities."
"Historically, when the government has intervened to shore up a company's or government's financial dealings (such as the loan guarantees made to Chrysler and the aid given to New York City during a fiscal crisis), the long-term effect has been that the government has made money back on the deal. The legislation provided an "upside" benefit for taxpayers."
I urge everyone to read the NAR's "A SUMMARY OF THE PROPOSED ECONOMIC STABILIZATION ACT
WHAT'S AT STAKE FOR REALTORS" now. And if you are not signed up for the Realtor Action Center, sign up now!
Lori Mode and Bruce Durham, Keller Williams, Elk Grove