How the New Housing Law Affects You

New housing law resource

This new law is not the end all be all to the housing crisis, nor should it be. If you want to read or download certain portions of the new law, there is an easy to use directory with a summary and table of contents for the five major areas found at this web site.

www.ushousingmeltdown.org/2008-housing-law.asp. On pages 394 to 420 you'll find the Help4Homeowners and the requirements to refinance. On pages 628-637 you'll see the info on first time home buyers credit. It's actually an interest free loan as it has to be re-paid.

Rob of CA @ Aug 10, 2008 14:49:55 PM

stuck in a ARM with no help

I'm in a ARM that is going up in 1 month. I talked to countrywide and they told me I dont qualify for any help.I can't afford the new payment but want to keep my home.I've never been late but they still don't wanna help.Also the value of my home has fell 20k.Any help out there or advice.How does this new bill help me keep my house?

george of NC @ Aug 06, 2008 09:32:17 AM

Underwater

So what can a person do if they have a 30 year fixed rate but with the decline in house value your loan is much more than the decreasing value of your home? Any advice?

Jeremy of CA @ Aug 04, 2008 13:35:30 PM

The effect on low income housing

The new Housing law is good as far as it goes to stabilize the housing mortgage market, provide a few rewrites of mortgages and help seniors with reverse mortgages, but persons needing affordable housing will be sorely affected. Investors, who own 40% of the nation's housing, will still lose many homes where these renters live. Where will the renters go? Ther is no incentive for investors to buy more homes to rent. Renters usually can not buy a home or they would. Affordable housing is already a problem and it will get worse - much worse.

Rebecca Bunch of FL @ Aug 03, 2008 12:30:16 PM

Socialist Legislation

We have embarked upon the least incremental of steps towards absolute socialism!

I wonder how many home buyers know that, depending upon when they decide to sell the home they purchase under the terms of this new lesislation, that they will be required to share their equity gains with the federal government from a minimum of 50% to 100%! This is the largest equity grab by the gvernment EVER. THis horrible piece of legislation has doomed every participant to owing the federal government at least half of all their equity gains, on top of the capital gains taxes, thus extending the tax burden on home ownership. Conceivably, one could purchase a home under this new law on October 2, 2008. If they need to sell before Oct. 2, 2009, for any reason, any equity gain must be given to the government AND you would still have to pay capital gains taxes on the entire gain!

Next, Sec. 2113 has killed the Seller financed "Down Payment Assistance Programs". This will limit the ability to purchase a home to those, and only those, who have cash to put down and pay closing costs. No longer will non-profit groups be able to provide assistance to those in the lower income brackets who need a helping hand to be able to purchase a home. OVER 40% of all FHA loans last year included down payment assistance! This wil drive home values down even further, thus greatly expanding the recession and limiting home ownership to the haves. The have nots shall never be able to receive assistance unless this horible legislation is over-turned!

I'll bet the news didn't tell you about these provisions, did they?

David Rahn of MD @ Jul 31, 2008 15:42:55 PM

FHA guarantees

Your summary includes an interesting statement....that FHA would "guarantee" these loans. That is a remarkable turnaround for the FHA program. FHA is primarily an insurance plan. Borrowers pay an insurance premium (upfront and monthly) and defaults are paid from the insurance pool. If this bailout plan means the loans are truly guaranteed (i.e. no insurance premium collected) then the US taxpayers are truly on the hook for this money. In addition to that, at the current level of FHA delinquencies, the resulting high rate of defaults could mean payouts that exceed the fund balances.

An additional note to "Tiredofthebull" ...England has had the same problems.

Grandma of NY @ Jul 31, 2008 10:05:24 AM

why this bailout was inevitable

Lots of the comments I read remind me of the old 70's complaints about welfare moms and cheats ... typical misdirected anger and blame. While your attention is mistakenly focused on all those "freeloaders" getting undeserved help with their suddenly unaffordable mortgage payments, those in power who are the real intended beneficiaries slide right under the radar. They made enormous short-term profits off the risky loans not giving a damn about the long-term consequences. Now the financial industry has made sure the taxpayers will foot the bill, not them! Yes, it's true a massive amount of mortgage forclosures will hurt property values and the average citizen ... but just think what the hit would be to the money changers. They're the ones this law is truly designed to bail out no matter what you hear otherwise. It's kind of like the old saying about war: there's always the stated reason and the real reason. Do some critical analysis and discover the real reason for the bailout.

Mary J. Sparling of WA @ Jul 30, 2008 21:48:15 PM

This is a Diaster

The comment from this nut-head makes me vomit. Every human being should have a roof over his or her head! A roof should not be based on a so-call "FAKE" american dream!! It is people like this nut, who wants a home but will make sure that you don't get one. It is people like this nut, who has prevented others from gaining just so he/she gains. It is people like this nut, who thinks the house has full coverage and payment will be forthcoming, but when a storm takes the house away, he/she will be the first one crying baby tears! This arrogant bastard don't believe the AIDS virus will attack!

whitehead of MD @ Jul 30, 2008 16:29:06 PM