Anyone that has a stake in real estate whether you are homebuyer, home seller, investor, or real estate agent should be jumping for joy. The new housing bill signed by President Bush will soon be making a big splash where it is needed. Too many people consider banks as the lenders and due to this are very concerned with the news about banks going bankrupt; however, this is an easy mistake to make. The banks are not actually the ones in control it is the investors behind the scenes that are making all the decision. Two of these investors have been in the news recently, which are Fannie Mae and Freddie Mac.

Freddie Mac and Fannie Mae are government-sponsored enterprises, which are a group of services corporations that were created by the congress of the United States. This group was designed to enhance the availability and reduce the cost of credit in the agriculture, education, and home finance sector. The home finance sectors are the largest of the sectors. Along with 12 Federal Home Loan Banks, this group has a large sum of money on their balance sheet assets, a matter of fact, totally over several trillion dollars.

Due to this new housing bill, Freddie Mac has been in contact with banks offering to pay them outright $2,200 for every short sale they settle successfully. What these means is that instead of going through with a foreclosure many homeowners can now opt for a short sale and even if the bank does not receive the entire amount of the loan, they are guaranteed the above amount of money from Freddie Mac.

Now, that this group is more willing to work with banks due to the generosity of the US government, realtors, homeowners, and even home sellers are sure to benefit. The banks will be more willing to work with short sales along with more resources available to staff loss mitigation departments. In our market today, short sales are not only valued but are a great way to rid the market of homes in foreclosure and the ability to rid the market of excess housing opportunities which will cause the demand in housing to rise.

This entry was posted on Tuesday, August 5th, 2008 at 1:35 pm and is filed under Homes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.