Am I the only person who has been asking this: "What in the world does this $700 billion bailout MEAN?!?!?"

I have been patiently waiting for some kind of summary that actually makes sense (and that a lowly Realtor can understand) on this $700 Billion bailout deal. The National Association of Realtors released a fairly concise (2 pages) summary this morning which can be found at the link below:

 

(click here) Summary of Rescue Bill 

I am not even going to TRY to explain it all in this post, but I would be more than happy to discuss it in the comments area below, or by phone.

I think the real key idea for the real estate world is that the bill had provisions for the Government to buy "troubled" loans from the banks, which would in turn give the banks short term cash to #1 - stay in business so Buyer can #2 - continue to get loans. 

The Government would, in turn, be able to not only renegotiate interest rates with troubled borrowers, but potentially LOWER their princpal balances based on current market values. That is a bizarre thought, isn't it?

SOME IMPORTANT QUESTIONS:

1. Should troubled homeowners be able to get loan balances lowered while those who aren't in trouble don't? What do you think?

2. Is all this stalling just so McCain & Obama can avoid looking like idiots if the bill fails and they are elected President?

3. Does Nancy Pelosi just generally tick you off every  time she opens her mouth, or does she bring back warm memories of your childhood when your mother scolded you for using a cuss word?

 

 

What I do know is this: I SHUDDER to think of a world where credit was no longer available. At first I was prone to only think of home loans and credit cards, but now I realize that this would extend to student loans and more...YIKES! 

AT THE SAME TIME, we continue to see Buyers obtain financing for home purchases without jumping through (in my perspective) too many proverbial hoops, so it is hard for me to really believe that credit is on the brink of totally drying up.

Stay tuned......