Congress, and specifically the NC delegation and Rep. Barney Frank have a new plan to stop the “bleeding” for many American Families who are upside down in their homes. This is really not so much a problem for those of us with property in the Triangle – but for folks moving here (and by my unscientific calculations almost 65% of the mortgages are currently being written for folks MOVING HERE), it could be a great deal.
The crux of the problem, as seen by Franks, are the number of new vacant homes that are competing on the market with “used” re-sale homes. We need to get folks into those new homes, draw the inventory down – and Badda Bing – no more Housing Crisis.
How he proposes to do this is with a 300 Ba Ba BILLION dollar overhaul of FHA which creates a complicated system whereby the banks take a little loss – the seller takes a little loss and the government takes the risk.
IMHO there’s no chance this will make it’s way through Congress prior to the election – but the provisions in the bill – which expand the FHA authority are helpful, and if passed, this could be the end to the Housing Crisis.
The question we must all weigh is weather or not we are willing to take on this additional risk to our collective “Uncle Sam” balance sheet. It could backfire, drive the dollar lower… and that would put gas at what – $6 bucks a gallon???