Housing Bill Awaits the President’s Signature

By the end of the week, President Bush would’ve signed the housing bill that will provide much-needed solutions to the housing crisis we are currently experiencing.

Months after the foreclosure crisis began in 2007, we are finally closer to something that would save us from imminent homelessness, especially if we are one of those who are experiencing difficulties in keeping up with mortgage payments. For months, lawmakers have worked hard in completing the provisions in the bill that would stem the housing crisis. With a 72-13 vote on Saturday, July 26, Senate approved and sent the housing bill to President Bush, who will “quickly sign it” according to White House officials.

The housing bill will provide much-needed solutions to the cancer of the housing market. After thousands of Americans became homeless due to foreclosure, and worries over the financial state of mortgage giants Fannie Mae and Freddie Mac after an alarming tumble in the stock market the past weeks, the government was keen on creating a law that would resolve the current crisis.

Housing Bill (H.R. 3221), once signed and put to law, will allow an estimated 400,000 troubled homeowners to get more affordable, fixed-rate mortgage loans, and provide more Fannie- and Freddie-backed loans. It will also raise Federal Housing Administration (FHA) loans to $625,000, give an additional $15 billion in housing tax breaks, additional state funds amounting to $11 billion, and even a $180 million funding for legal services and pre-foreclosure counseling for distressed borrowers.

First-time homebuyers will enjoy a $7,500 refundable tax credit which basically works by paying only the difference between the price of the property to be purchased and the tax credit you qualify for. For example, you owe $1,500 for the property, by using your tax credit, you would get a $6,000 refund. It will also protect borrowers who are currently or previously defaulted on their mortgage from investor lawsuits.

The FHA will receive $300 billion in funds to take care of making more affordable mortgages for homebuyers, while Fannie Mae and Freddie Mac will get an extended credit line from the Treasury Department to make sure that both GSEs stay financially stable. The government may take equity stakes if both companies experience trouble.

We are now days away from the weekend, and every day that passes by is one more day closer to, hopefully, the end of foreclosure.

Housing Assistance Network < http://new.housingassistancenetwork.com > - is a site that aims to help those who are in the low to moderate income brackets find financial assistance for housing, help in acquiring a new home, or grant programs from both state and non-government institutions.

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