Housing Rescue should pass by Saturday.

July 26, 2008 – 12:11 am – No Comment

Tomorrow up to 400,000 homeowners can take a sigh of relief after the Senate passes a bill to let them refinance into lower interest loans. This will be backed by the Federal Housing Administration. The rescue gives the Treasury an unlimited amount of money to hold Freddie Mac and Fannie May up as often and as long as they need it.

RealtyTrac, Inc (a company that provides an online database for pre-foreclosures, foreclosures, auctions, houses for sale by owner, and MLS listings) said that 1 in every 171 homes received a foreclosure related notice in the first quarter.

At this point, perhaps to keep people from becoming homeless, this is a good idea. But in the future, I would hope that people would learn from their mistakes. This includes the lenders, who were giving out ARMs to people who they knew could not afford them when the rate adjusted, and borrowers, who knew they could not afford the house they were buying when they had to get an ARM.