Monday, September 22, 2008
The Bush administration asked Congress on Saturday for the power to buy $700 billion in toxic assets clogging the financial system and threatening the economy. It's a lot of money tucked into a three-page bill, and a Democratic effort to include homeowner protections may be added.
There's a silver lining in the economic crisis: A week of rapid-fire financial calamities could break an impasse in South Florida's real estate market, as vulture fund investors send signals that it's time to buy.
Experts say that the government's enormous plan to relieve Wall Street banks of their bad investments has a decent chance of stabilizing home prices, at least in theory. By buying troubled mortgage debt from major banks under the bailout plan, the government can help make more money available to borrowers - and hopefully at lower interest rates.
Another complication could be on the horizon for short sales. Some lenders are agreeing to allow a short sale, but only if sellers sign a note promising to pay some or all of the balance due - debts that could burden them for the rest of their lives.
A political poll finds Florida's housing crisis at the forefront in most voters' minds, and their preferred solution seems to be allowing subprime borrowers to renegotiate their loans. Statewide, it's a close race between Barack Obama and John McCain, with Obama viewed as the candidate best positioned to help the economy
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