Bail Out Programs for Distressed Homeowners? Don't Count On It!

Many of the agents I work with have asked me about the so-called 'bail-out' programs that may be coming for homeowners and how will this affect our businesses and more importantly the lives of homeowners in distress.  

Secretary of the Treasury Henry Paulson has started to classify what is going on as inevitable:
"Public policy cannot be expected to prevent these foreclosures. Many of today's unusually high number of foreclosures are not preventable."  Paulson seems to be setting the stage for very little future government intervention in this crisis at the homeowner level. 

Last week news has been released that the current mortgage crisis actually may cause Fannie Mae and Freddie Mac to become insolvent.  It is highly unlikely that the US government could allow this to happen. Expect to see the government get involved at the national and corporate level. 

I do not anticipate help for individual homeowners in some form of a bail out.  It is essential for us as Realtors to educate ourselves so we can advise our clients on short sale issues and negotiate aggressively on our clients' behalf.