Will the Bailout Help?

In a front page article of today’s Washington Post, it appears that Congress is getting ready to pass some sort of massive bailout plan designed to save the economy from going into free fall.

To be honest, I haven’t read every word of the main article, let alone all the analysis articles that accompany it. However, it looks like part of the bill would allow the government to step in and re-work some of the mortgages for the people who are in danger of foreclosure. This, in turn, would reduce or, at least, slow the current escalation in the number of foreclosures on the market.  If this happens in some kind of orderly way, it’ll be a good thing.

  1. It will help people stay in their homes,
  2. It will slow the steep decrease in home values,
  3. It will reduce inventory (the number of homes on the market) and
  4. Allow home sellers a fighting chance to sell their homes.

I’m still not sure that it will help the mortgage industry enough to create more credit or somewhat relaxed credit so that more qualified home buyers will be able to buy homes.  Sure, it’ll help people in danger of losing their home which is a good thing.  However, we also need a way to get mortgages to qualified (i.e., good credit, verifiable income, etc.) people who want to buy homes.  How that will happen remains to be seen.

I’ll be on the lookout.  You can take that to the bank.

About Ken Montville

Ken Montville is a Realtor® and Associate Broker with RE/MAX United Real Estate in the beautiful Maryland Suburbs of Washington, DC. He has been selling nice homes since 1999. Way back in the 20th Century.

When Ken Is not doing the real estate thing he can be found all over social media in places too numerous to mention and he listens to jazz, reads a little (mostly non-fiction), hangs out with the Rotary Club of College Park, MD and can be found blogging at MDSuburbanHomes.com