12 Dec 07 
Solution to the Real Estate Market… is it Deserved and Will it Work?
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As many of you know the federal government recently implemented “The Bush Sub-prime Bailout” a new program meant to decrease the amount of future foreclosures. The idea is to encourage banks to voluntarily freeze interest rate increases on sub-prime loans set to balloon next year; the freeze would last for up to five years.
The problem I see with the plan is the qualifying criteria: only homeowners who are less than a month behind on their homes repayments, received their new home mortgages in 2005, 2006 or 2007 and whose interest rates will not reset until 2008 are eligible.
I believe that the plan will ultimately only help a small group of people, and that the impact will not be as big as it is perceived to be. Not only are many Americans convinced that this help will not be enough and will not affect enough, but we are split 50/50 as a nation on whether or not the homeowners deserve the assistance. Many believe that the called “irresponsible” homeowners should not receive any government assistance and many others believe that if you’re going to help some homeowners, you have to help all.
Whatever the outcome, I’m positive that, as usual, everyone will not be happy. I don’t oppose helping homeowners out because an increase in foreclosures will likely negatively affect me too. I’m fine with this new program as long as it helps a lot of people that need help. It doesn’t seem like that is going to happen and I’m not sure if I support the program.
Do you agree with it and support it? Why or why not?
Why don’t we create a program that will help more people, one with fewer restrictions? A program that may truly help stimulate our fading real estate market.
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Tags: american, Bush sub-prime bailout, federal government, forclosures, homeowners, new homes, subprime loan crisis
