Should the government bail out lending institutions or should they let them fall by the wayside? I have heard on more than one occasion that we the people, (read Government) should not bail out the lending institutions that have caused the problem with the real estate market in the first place. “Too bad on those institutions.” For the most part I agree, business is business, and sometimes businesses fail. However when it comes to Fannie Mae and Freddie Mac I draw the line. I applaud the government’s quick action to guarantee the solvency of these organizations. Imagine if you will what would happen if the main money lender for the Federal Government went out of business. I shudder to think. Sub prime lenders who made risky loans in order to achieve higher profits; No problem there, where they lay is where they stay. That is business. However Fannie Mae and Freddie Mac are not get rich quick loan companies. They are the FHA, IHFA, etc loan products that are the true back bone of the real estate and mortgage industry. Having them go out of business would be bad for everyone. Period! End of discussion!!
If you are concerned about if your money is safe at your bank first make certain that it is FDIC insured. Once you know your money is at an FDIC insured bank visit http://www4.fdic.gov/EDIE/ for an explanation of how your money is protected and a calculator to check it. In easy terms, remember I am a realtor not a banker, up to $100,000 dollars of your money is protected and insured at the FIDC bank. Call your banker and ask them to explain the rest.
The new programs that the Government is coming out with to help people with the current crisis sound positive and look positive. The real question remains. Can the people who need the help qualify? The best part of the new package is a $7,500 tax credit aimed at first time home buyers. The more first time home buyers we have the better the market will be. These new rules will not go into effect until October.
Tags: Boise real estate, first time home buyers, Foreclosure, housing prices, Hud Homes, Idaho Real Estate, Meridian real estate, rent or buy, Rich Nesbit, weather
