July 24, 2008 Elad Bushari

President Bush dropped his opposition to new legislation designed to shore up the housing market, White House press secretary Dana Perino told reporters . Treasury Secretary Henry Paulson says the bill, which is moving swiftly through Congress, should help turn around the housing downturn. The president could sign the bill into law by the end of the week, despite his previous objections to its provision of $3.9 billion to help neighborhoods hit hardest by foreclosures. The White House also had criticized the plan as a burden on government agencies and a risk for taxpayers.

Under the new legislation, the Treasury Department will have the power to extend an unlimited line of credit to government-sponsored mortgage companies and buy an unspecified amount of their stock. Also, struggling homeowners will be allowed to refinance into more affordable loans backed by the Federal Housing Administration in an effort to stem the tide of foreclosures. The bill places tighter controls on Fannie Mae and Freddie Mac, and sets a cap of $625,000 on the loans that they may buy. It includes about $15 billion in housing tax breaks and allows people who don’t itemize their taxes to claim a $500 – $1,000 deduction on their 2008 property taxes. The bill also increases the limit on the national debt to $10.6 trillion.

“We believe this is not the time for a prolonged veto fight,” Perino says. “The positive aspects of the bill are needed now to increase confidence and stability in the housing and financial markets. While we have concerns with other aspects of the bill, it is important that the new authorities are put in place promptly.”

Elad Bushari

Elad Bushari is the Broker / Owner of Bushari Group Real Estate and a National "30 Under 30" Honoree by REALTOR Magazine in 2009.

Comments (4)

  1. How much is your home worth? Well, it all depends where you live.

    The real estate market is still shaking. New data suggests that home prices have hit a new record low. In every new study that comes out, homeowners from Miami, to Las Vegas, Phoenix and Los Angeles, have seen their home value go lower every time.
    Is that disappointing? Of course it is.
    Should we sell? Is not a good time.
    Should we stick to it? Yes, if you can.
    Have we hit bottom? Nobody knows.

    Banks are facing their worst foreclosure crisis.
    Don’t take me wrong, it’s good if you are in the market to buy a home for yourself or if you are an investor, but if you are not, and you own a home, most likely the value of your property is down at least 15 %.

    Why do banks care if you are loosing your home? By having to sell repossessed homes, banks have to literally slash their prices down. It gets very costly for them, after all, they have to pay property taxes, maintenance costs, and whatever utilities that need to be paid, all of this expenses for a house that it’s just sitting there, vacant, and the bank is getting nothing in return.

    The latest study by the S&P/Case-Shiller Home Price Index of 20 cities, revealed the news that for 22 consecutive months home prices dropped. Only from April to May, 2009 the decline was of 0.9 %

  2. andar909

    hi, andar here, i just read your post. i like very much. agree to you, sir.

  3. corinna

    hi, yanny….your writte is easy to understand, thank you , I brought my home one year ago, now I”m a devaluated home owner, I will like to learn more about the new bill signed, and how it can help,.. something else..it is true, people in foreclosures or in short sale, can get a house tax break for the years 2008 and 2009…? where I can have more information?

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