A mortgage rescue plan to bailout hundreds of thousands of homeowners across the nation was approved 76-10 by the Senate.  If there is enough support to override a potential veto by President Bush, a new FHA program will be implemented to help homeowners over their heads to refinance into more affordable and less risky loans.  In addition, there may be an $8,000 tax break for first-time buyers. 

For San Clemente and California real estate, this is great news; the state had the greatest amount of risky loans issued over the real estate boom.  This Bill could help the San Clemente real estate market stabilize as individuals with their homes on the market or thinking of putting their home on the market because their loans are too costly may be able to refinance into less risky loans.  This would help to clear this piece of the inventory off the market as these individuals may no longer leave their homes up for sale.  In addition, first-time buyers may come off the fence with tax incentives.  As new home builders have halted production, these buyers will be forced to help clear the resale market in the given price range.  Stay tuned for more updates! 

This entry was posted on Tuesday, July 8th, 2008 at 10:31 am and is filed under Market News & Analysis. 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.