Congress Getting closer to $4 Billion bail out!

Congress voted 83-9 Tuesday on the foreclosure rescue bill that could help 400,000 homeowners nationwide get affordable and financially stable mortgages.  The Bill would let the FHA (Federal Housing Administration) back $300 billion in new, cheaper home loans of distressed borrowers who otherwise would be considered too financially risky to qualify for refinancing.  The Senate could act on it as early as today but Democrats are fighting each other over key details could delay the Bill being placed on the Presidents desk till July.  President Bush has said from the beginning he would veto such a bill but changes made from the original draft could sway the President for his stamp of approval.  Investors and speculator are not eligible or included in this bill which is setup to help homeowners who are doing their best to cover mortgage payments but falling short due to unrealistic interest rates, not consumers who were trying to make money in the real estate boom a few years ago.  The federal bill is not a total relief for homeowners, any future profits from the sale of the home will be split in half with the government.  Homeowners selling shortly after will not have as big of an impact as homeowners selling 5 -7 years down the line.  Opponents argue the bill will cost taxpayers 1.7 billion dollars and help individuals who took out mortgages that they could not afford therefore making taxpayers pay for the cleaning up the mess.  Also with the news of possable mortgage fraud from major financial institutions, paying for the greed of these companies who were offering unrealistic mortgages attracting buyers that could not and should not of been given a mortgage in the first place. Foreclosures have a negative impact on the economy and communities, the question is should taxpayers pay to alleviate the huge fallout of more foreclosures in the near future to stop the bleeding of the housing market and start the slow climb back more normal 3 – 5 percent increases in appreciation?