The good and bad of the new Housing bill..plus free gas!
July 30th, 2008 Categories: Maryland Real Estate News
President Bush today signed into law a bill that’s purpose is to help stabilize the real estate market and offer aid to struggling home owners and the financial institutions that are holding the bad debt. Originally President Bush indicated he would veto the bill because it was socialistic but later decided it was “better than nothing.” Tell me folks, what do you think?
The bill is applauded by The National Association of Realtors, builders, and the banks. It has been reported that over 400,000 homeowners will be able to take advantage of better financing terms and options.
Some of the positive results of the new housing economic stimulus bill include:
- A $7500 tax credit for first time home buyers. If that’s you…call me!
- A permanent increase conforming loan limits from $417K to $625 depending on your market. More news to follow.
- A program for home borrowers to re-finance their existing mortgage with better terms with the FHA. I have read over these terms and see many pitfalls as well. Not everyone will qualify, and if you do there is a price to pay. If you feel you need to consider such relief please let me refer you to a knowledgeable loan officer who understands this program.
Some of the negative aspects of the new housing economic stimulus bill include:
- The end of “down payment assistance” programs such as Nehemia and Genesis. They helped a lot of folks obtain financing for loans but they also had higher foreclosure rates.
- Will cost the government $300Billion so where is that money going to come from? Taxpaying folks who aren’t in foreclosure. So even though you were smart and didn’t get in over your head..you are paying for the debacle.
- The terms of the new FHA loans do have some serious caveats such mortgage insurance, strict guidelines, and re-payment of lost value via fees when you sell your home.
- No real indication if this will be be enough or will be accepted by the current lenders who may participate voluntarily.
I thought I would end this post with a little nugget for those paying attention. First one to post a comment with the artists name who wrote the following wins a $10 gas card:
“Rise so high, yet so far to fall
A plan of dignity and balance for all
Political breakthrough, euphoria’s high
More borrowed money, more borrowed time”
Click below for another hint if you need one!
That narrows your search so post your comment and you got the Gas!
Scott
3 Comments »
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Scott,
You hit the nail on the head when you summarized the latest new housing bill. Sounds like another patch job waiting for the next leak to spring. I believe the lyrics belong to: Megadeth.
Comment by Camille — July 30, 2008 #
The song is Megadeath Foreclosure of a Dream.
Excellent choice.
-Bob
Comment by Bob — July 31, 2008 #
Buddy! July 30th? Deer hunting I assume! Hope you’re well.
Rob
Comment by Rob Saxe — September 9, 2008 #