Charlotte Real Estate, Foreclosures, Short Sales

On a 63-5 vote, Senate passed a mortgage rescue.  Banks that agreed to take substantial losses on those distressed loans  could avoid costly foreclosures and be assured of recovering at least some money.  Aimed to help hundreds of thousands of homeowners struggling to pay their mortgage and avoid foreclosure.  Under the plan, homeowners who can't make their mortgage payments can get a more affordable mortgage backed by the Federal Housing Administration.  The plan calls for as much as $300 billion in new mortgages insured by the FHA.  This would help an estimated 400,000 homeowners.  Challenges lie ahead with the House of Representatives planning to rewrite some key details of the plan and the White House threatening a veto.

Why a Veto by the White House?

The White House cites 3.9 million in the measure for buying and rehabilitating foreclosed properties it said would help lenders, not homeowners.  The measure also includes a modernization of the FHA and would create a new regulator and tighter controls on Fannie Mae and Freddie Mac.

Trouble for Fannie Mae and Freddie Mac?

Housing finance giants, Fannie Mae and Freddie Mac will be getting a larger credit line by the U.S. Treasury.  This measure will prevent them from liquidity problems.  The goal is for Fanne and Freddie to respond to their shareholders and keep financing real estate, not be taken over by the Government.  According to  White House Press Secretary Dana  Perino "It is crucial that Congress quickly works to enact this legislation as a complete package along with the strong oversight reform legislation recently passed in the Senate.

IndyMac Opens Monday 'Strong and Safe' says New Boss

According to IndyMac's new boss John Bovenzi, "Come Monday morning, it will be business as usual for all insured customers".  The bank has 265,000 customers with insured accounts.  The Federal Deposit Insurance Corp. guarantees traditional bank accounts up to $100,000 and individual retirement accounts up to $250,000.  IndyMac lost $184.2 million in the first quarter of 2008, on top of $614 million last year, and announced last week it was expecting a wider loss for the second quarter.

No word yet on the status of the sale of IndyMac's assets.  The FDIC is hoping to find a buyer for the bank within three months. Homeowner's PLEASE keep paying your mortgage!!!