“Rescue Me”
We’ve all been hearing about the people who can’t make the mortgage payments on their adjustable rate mortgages and end up being foreclosed upon by the “big bad” mortgage companies. I know there were lots of abuses by the mortgage lenders and yes, I hate to say it, even some real estate agents. But come on folks, can’t the borrowers/buyers take some of the responsibility? Guess not. Because it is so out of control now and the public is screaming “rescue me”, the government has had to step up to the plate. And that they have done. The new Federal Housing Bill, actually named “Housing and Recovery Act of 2008″, was signed by President Bush the last week of July. Among other things it puts in place a mechanism for some homeowners to refinance using FHA-insured loans. It also gives first-time home buyers up to a $7,500 tax credit. There are several other points to this bill including Freddie Mac ,Fannie Mae, and FHA Reform. Go to http://www.hud.gov/news/recoveryactfaq.cfm for a pretty inclusive Q & A on the “Act”. These are all necessary measures given the current climate to help get the housing industry back on track.
But what will happen when the borrowers/homeowners start walking away from their homes because they don’t want to make payments on a home that they owe more than it’s current market value? Will they scream “rescue me”? Now if they do a short sale, they are already getting tax breaks (debt relief) that they never got before (another new law).
I guess the question for me is “Where does this stop”? When will we as a society be responsible for the decisions we make? Whether they (choices) are personal or professional, no one wants to own the negative consequences. Everyone is ready to stand up and claim the positive ones. And living in California it is always in our face with this never ending flood of lawsuits over anything and everything.
One very positive outcome of this whole debacle is the affordability factor for young people. Prices are low, interest rates are great, and now a tax credit for first time home buyers. I’m not sure how it can get any better. It’s time to make a committment and stick to it. It’s time to buy !!!!!
Happy House Hunting
wallace…
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