What the Latest ‘Bailout’ Will Do For Us

Published by julia | Filed under Miscellaneous, Real Estate, Uncategorized

President Obama’s new housing bailout looks hopeful for many homeowners

If the banks are paying attention right now, they probably don’t like what they are hearing. The government has basically said that either you are with us and want to be part of the solution, or you get nothing. This type of talk probably doesn’t sit well with most bankers.

But for homeowners and those interested in buying or selling anytime soon, this should be what is needed to help stop the dropping home prices. If more people are allowed to refinance at the price that is more accurate than the upside down mortgage they have now, it will help the comparable pricing to be more consistent from neighborhood to neighborhood.

Here in Tampa, it is a double edged sword. The amount of homes for sale and the amount of foreclosed homes is so high that the prices may not see the slow down as fast as in other areas of the state. It is hard to stave off the price drops when there are so many other factors influencing them.

Nevertheless, there is hope in the near future for the housing market. In an economy such as the one we are experiencing now, any government subsidy is a good thing. The fact that they realize that there is a real crisis here is the first step to recovery. Now that the first few steps of the plan have been revealed, we can get an idea of who this bill will help and who it won’t.

Floridians aren’t alone in the real estate value freefall. Almost all of the major Sunbelt states have suffered as well. But we will feel the pinch more because of the amount of people that have become a victim of foreclosure due to the rising mortgage rates and falling property values. One thing is for sure, it will get better.

When we look back at the booming days of the real estate markets, we didn’t even think about this as a possibility of happening around here. It was far-fetched for anyone to even think about it. And we certainly never thought that we would need the government to bail us out. What a difference a few years and a few trillion dollars can make!

The latest government plan will definitely help millions of people. Whether you call it a bailout or a stimulus plan, it will be more of a search and recovery mission than anything else. It will affect all of us in one way or another. How it affects us is not clear at this point, but any positive help right now is welcomed.

Bottom line, we should research this entire plan when it is laid out in detail. You don’t have to agree with any or all of it. But you need to understand its intention. To help those that are still in their homes stay in their homes. To offer help to banks that want to participate in the recovery. And to help all of us by begin the end to the value slide. It will be interesting to say the least!