Bailout for our big mess….

The foreclosure rate has really gotten out of hand. I am glad the government has decided to step in on this crisis. The government’s bailout plan will buy out the bad debt that the banks and mortgage lenders are carrying.  The bad debt will be removed so the banks can financially recover.  Part of the bailout package allows the government to loan money to owners in danger of foreclosure. The government will buy the “bad” loan and make a new loan to reflect the current market value.  This will substantially reduce the loan amount and make the payment more affordable to the homeowner. According to the McCain plan, the homeowner must prove a hardship and it must be their homestead among other criteria.  This process will keep the home from being foreclosed on and keep the homeowner in the home. This plan will also aid the housing market with less foreclosed homes on the market. Only time will tell if this is actually going to work, but something had to be done to clean up the housing market mess.