Bufford Warren Homes

President Obama’s Home Foreclosure Rescue Package –Part 1

I waited with anticipation for President Obama's Home Foreclosure rescue package. I wanted to know what I was going to get for my 75 Billion dollars. I listened to his speech and it sounded more like a political speech than a workable plan to rescue home owners. Lots of wind and very little substance.

I did find out that in addition to the 75 Billion for this project, there would be another 200 Billion go into Fanny Mae and Freddie Mac so they could fund 100% of the homes that would be refinanced under the FHA guide lines. Up to this point Fanny and Freddie only guarantee 80% of those loans with the other 20% were owned by the lender of choice.

This package is getting a lot of hype but I am reserving my judgment until I see how many people it is really going to help. Much of this hinges on voluntary cooperation and rather large mortgage write downs by lenders. What I did not hear was a way to address the issue of how to address the huge number of homes already on the market. This must be addressed in order to stabilize values and stop the downward spiral.

The Stimulus Bill and Home Financing

 

The Stimulus Bill and Home Financing
In the pending legislation there is and $8,000 tax credit for home buyers. This credit is for people that purchase a home between January 1, 2009 to December 1, 2009. And if the home is resold within 3 years the credit must be recaptured on the sale of the property, but if it is held for more than 3 years it is nonrefundable.
Fannie May and Freddie Mac have adopted the same loan limits for 2009 as those for 2008. For Arizona the Maximum limit on a FHA mortgage is $417,000. There is also money appropriated for cities and counties to use for neighborhood stabilization and redevelopment.
This will not be enough to address the root cause of our economic problems that were created by the mortgage finance and housing industries.

What Stimulus Bill is Our Representative Voting On ???

Have all of the Democrats turned stupid? How can anyone vote for a piece of legislation when they have not had the time to read it and study it? This 800 Billion dollar bill (stimulus package) was not even printed until the evening of February 13, 2009 and I will defy anyone to read it and comprehend its meaning without having a few days to study. Yet the House of Representatives has rushed a vote on this early morning on February 13, 2009 and the Senate has scheduled a vote for February 14, 2009.

This kind of political activity is very self serving and is not in the best interest of the country.