What About the Mortgage Bailout Bill?

If you have a mortgage like most of us dads, listen up. Some of these mortgages dads have are called subprime mortgages and if you happen to have one of those loans and are struggling then this bill may provide you with some needed relief.

Congress on Saturday passed a landmark housing bill, also known as the “mortgage rescue plan”, that is expected to help hundreds of thousands of struggling homeowners. The housing bill was passed by the Senate this past weekend session by a vote of 72-13. The mortgage bailout plan includes a $300 billion program to allow homeowners “trapped” in subprime loans that they can’t afford to refinance their mortgages at lower rates. It also allows participating lenders who agree to take a substantial loss on the mortgages to reclaim at least some money and avoid a costly foreclosure.

The loans are to be capped at $625,000 per mortgage and estimates are that the program would help about 400,000 homeowners keep their properties by refinancing the loans with lower interest rates and government backed paper.

If you’re up to your ears in mortgage debt and your interest rate is high and perhaps going higher pay close attention to this news and jump on the chance to refinance when details of how this program will be implemented roll out. Dadz will watch for details as well and try to report on it when details are available.

What this means for the rest of us is our government is stepping into the mortgage business and using taxpayers dollars (i.e. your money dad) to bailout your neighbors who bit off more then they could chew. More concerning is the ability it gives State and Local governments to purchase homes that are in foreclosure in their markets and resell them or rent them out. Smacks of socialism or worse doesn’t it?