The U.S. House and Senate have been working on bills to help bail out troubled home owners. President Bush isn’t too keen on the proposal and it’s not yet clear whether or not he would sign this in to law.
The U.S. Senate is proposing creating a new fund that would purchase up to $300 billion worth of mortgages or parts of mortgages provided the banks selling them the mortgages write them down. Essentially our elected officials have determined that it is better to have the U.S. taxpayer get involved to spread the risk of a million or two foreclosures and short sales rather than let the market work.
As soon as there are more details on the plan, I’ll post them.
BTW, what do you think the odds are that we will start to see a lot of news right near November that the housing market has “officially” bottomed and we are now in recovery. Anyone want to take this bet?