Chicago Real Estate Blog

President OKs New Government Housing Bill

It’s the “go ahead” American homeowners have been waiting for since before the Fourth of July holiday, when word of the mammoth “foreclosure rescue” legislation was bouncing around Washington with a White House veto threatening to terminate the whole thing.

This Wednesday President Bush, despite his previous promises to veto the plan, signed the 600+ page housing bill that will provide help for an estimated 400,000 U.S. homeowners in risk of foreclosure. It is hoped that the new law will prevent enough impending foreclosures to level off nationwide price declines and re-establish faith in government-backed lenders Freddie Mac and Fannie Mae. 

The main idea behind the bill is to reinforce the mortgage industry with more government insurance for 30-year, fixed-rate home loans through the Federal Housing Administration. This would allow homeowners who cannot make their monthly payments to switch to a more affordable, reduced-rate loan and ultimately keep their property.

For more information on this bill and how it will help Americans on the verge of loosing their homes, click here.

Posted at 09:08AM Aug 04, 2008 by Spencer Mason in General  |  Comments[0]