Newly-Approved Housing Bill Considered as Good Band-Aid
Finally, there is hope for troubled homeowners. The very controversial foreclosure housing bill, signed by President George Bush last Wednesday, is considered to be the a good band-aid since it is the first major step that the government has taken to address the foreclosure crisis.
It includes key housing provisions including the rehabilitation of the federal agencies, Fannie Mae and Freddie Mac, grants for states that will allow them to buy and repair foreclosure homes and a mortgage-relief plan for strapped homeowners so they could shift to more affordable mortgages.
But the 694-page legislation is still raising doubts among many analysts and real estate experts.
For starters, the number of troubled homeowners that could be approved for the program is relatively just a small percentage. According to the Government Accountability Office, about 400,000 qualified borrowers will be able to enjoy the mortgage-relief provisions of the new housing law. Considering that the number of foreclosure filings for the last couple of years has reached millions, it is certainly something to think about.
One economist even predicted that by the end of the present year, there will be an estimated 3 million new mortgage defaults.
If this is true, then the new housing legislation will certainly just be acting as a band aid to slow down and minimize the havoc wreaked by the enduring foreclosure crisis. The federal government needs to still address issues including unemployment, weak economy and high fuel prices in order to find a long-term solution to the problems created by the mess in the mortgage and housing industries.
For now, everyone is holding their breath and waiting if the new housing law will indeed do its job of providing assistance to troubled homeowners and if could somehow stop the bleeding wound that the foreclosure crisis has inflicted on the housing market.