America Bails Out Homeowners!

Those in foreclosure or whom have high interest rate, subprime or other loans, will be able to take advantage of what the congress, the senate and the president area signing off  in the next few days.  Will this new FHA program really help people?  Yes, the gigantic mortgage bail out program will help a lot of people and also put a "plug" into the real estate and mortgage sink whole  we all are experiencing, these days.  

The FHA - Hope for home owners program will allow tons of people the opportunity to stay in their homes.  Home owners will be able to lower their mortgage payment to actual payment they can afford, under 30 year fixd loans.  They will qualify based on their ability to pay, not using what many call "Liar Loans".  This is a good thing.   Additionally, they will qualify at up to 90% of the current value of their property.  Thousands of mortgage loan debitors [consumers] are owing more loan than the home is worth. This program will correct this issue and they will be able to qualify at current values, instead of just letting the home go into foreclosure. 

Not going into foreclosure will help  current lenders  since those lenders will not have to place the properties back into the marketplace using realtors to sell those homes for up to 6% commissions.  Additionally, less homes placed into the real estate marketplace will case a healing effect to the current massive downturn in home values.  This process will correct the market faster and bring normal conditions to both the real estate and credit markets.  

I hate the fact that this FHA mortgage bailout program  had to be done but it was  necessary to stabilize the American ecomony.  If you have an opportunity, check out the amount of "pork" or politicians on both sides of the issle have included in this bill.  I will provide the final bill when the president signs off and the bill becomes active.