Well, the bailout has finally passed! Is it perfect? Not really. Will it work and save the economy from any more cataclysmic drops? Too early to tell for sure. The one definite thing about it is: it is doing SOMETHING! Among all of the various things it is set up to accomplish are two thatg will help the housing industry and both homeowners and homebuyers.
First, it will provide funds for the Federal Government to buy up troubled mortgages so that the lenders now holding them can. in effect, provide new lendable cash to the nation's banks to make new loans on a sounder, more intelligent basis than was done over the past five or six years.
Second, it has some increased aid for homeowners facing loss of their homes through foreclosure.
There are various otter items dealt with in the bill, and, contrary to all of the doom-and-gloom folks out there, the sky won't likely be falling as a result of this bill's passage. In fact, in the cases where the government is taking an equity position in mortgages and/or foreclosed properties, it is conceivable that when the individual assets sell, they may sell at a price above what the Feds paid in, thus generating a profit for the taxpayers.
Stay Tuned--it's going to be an interesting ride!