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Home Mortgage Crisis - Is Obama's Mortgage Bailout Bill Enough to Stem the Tide?

By: Ashoke Banerjee, Wed Oct 28th, 2009

The housing market has taken a beating over the last year and many of the major markets that exploded in price were hit the hardest. States like California, Las Vegas and New Jersey lost billions of dollars as house prices plummeted into a seemingly bottomless pit. Now recently President Obama's home mortgage stimulus bill was a pretty good step in the right direction but there are some pretty big negatives in it that need to be corrected. The main reason we are still in this housing glut is because of the massive amounts of foreclosures, and the only way we will get out of this is to stop any more foreclosures from happening. Obamas mortgage bailout bill so far only will save the homeowners with a negative mortgage rate of 105 percent , meaning that if you have a home worth $100,000 and your mortgage is $105,000 you are ok to get a mortgage modification plan but if your mortgage is at $106,000 then you are out of luck. If this part of the mortgage bailout bill isnt changed then virtually every homeowner in big cities like Florida and California who have negative mortgage rates of 140% or even higher. Hopefully the president and certain members of congress can put more pressure to make some modifications on this bill to allow for high negative mortgage rate home owners to also qualify for a mortgage modification. Its not the fault of these homeowners that their house prices sky-rocketed and then came back down to earth leaving them holding the bag on their mortgages. So far there was a tiny glimmer of hope in San Diego as it experienced its first housing price gains in almost 2 years. It will still take about 6 to 9 months for these foreclosures to work themselves out of the market but if we get through this time ok housing prices should stabalize and start moving upwards again. Lets hope the president acts quickly on this. To get a great deal on Home Equity Loan visit http://homeequityloanstore.org today and you will get the best deal possible at the cheapest rates available on the market.