This from the AP-
"The measure, regarded as the most significant housing legislation in decades, lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes.
It offers a temporary financial lifeline to troubled mortgage companies Fannie Mae and Freddie Mac and tightens controls over the two government-sponsored businesses.
It aims to spare an estimated 400,000 debt-strapped homeowners, many of whom owe more their houses are worth, from foreclosure by allowing them to get more affordable mortgages backed by the Federal Housing Administration.
The FHA could insure $300 billion in such mortgages, which would be available to homeowners who showed they could afford a new loan.
Banks would first have to agree to take a large loss on the existing loans in exchange for avoiding an often-costly foreclosure.
The plan also is designed to relieve a broader credit crunch that has taken hold because of rising defaults and falling home values. To free up safer and more affordable mortgage credit, the bill permanently would increase to $625,000 the size of home loans that Fannie Mae and Freddie Mac can buy and the FHA can insure. They also could buy and back mortgages 15 percent higher than the median home price in certain areas."
Here's the biggest challenge in my book. This bill is nothing more than a bail out for a majority of these people who bought too big of a house or a house that they had no right to get into in the first place. Someone who got a 100% or higher LTV mortgage on a Neg AM loan and now can't afford the adjustable or, surprise, the house has gone down in value from the 110% LTV loan they got and now they want my tax dollars to bail them out? That should be called a seminar they took, not a slap on the wrist and we'll take care of the bill for them.Then there' s the banks who lent out these crazy loans to people they knew could not afford them. I am all for companies making a profit as long as it is within a little thing called integrity. They did this out of greed.
The only silver lining is the amount of people this won't help and that the economy still needs creative real estate investors. There are many people this bill will not help that you can when using creative strategies. Get the education you need to do so. Start dabbling. The one thing this Bill, and others that will come, I'm sure, will guarantee is this is not the last change we will see. The time is now to get in the game.
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