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Government Obama to the rescue to 2011....wait a minute.

By
Real Estate Agent with Roudebush Realty,Inc.

Government Obama to the rescue to 2011....wait a minute.

 

Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help. The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama’s loan modification effort. HARP was just extended through June 30, 2011.

Read the whole article at Reuters.

 

Does this mean that the 800 Billion budget for housing is going to restart our market. I am in doubt and I feel that the government needs to stay out until we reach the bottom.

Show All Comments Sort:
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Beth - There was an interesting post on Calculated Risk Blog earlier today that addressed this article.  I agree with CR, and find it hard to believe the government will do this as it won't solve the problem.

Aug 05, 2010 03:37 PM
Beth Brace
Roudebush Realty,Inc. - Hinsdale, IL
Hinsdale, Oak Brook, La Grange, Homes

Thanks for your comments. I just can not believe that the government thinks this is an answer. It boils down to jobs first.

Aug 05, 2010 03:44 PM
Ellen Crawford
Maximum One Executive REALTORS® - Alpharetta, GA
Alpharetta Real Estate Agents & Alpharetta REALTOR

It is for the banks, and political donors not the people!

Aug 05, 2010 05:07 PM