Last Wednesday, President Bush signed a bill that is expected to aid about 400,000 US homeowners with shaky loans or those facing foreclosure. H.R. 3221, also called the Housing and Economic Recovery Act of 2008, was initially opposed by the President due to the inclusion of government grants in the aid package. Bush later dropped his opposition, and signed the bill Wednesday, a move that supporters are calling the biggest aid recovery package in decades. The bill provides 300 billion dollars in federal guarantees to help homeowners, and will aid mortgage giants Freddie Mac and Fannie Mae. The bill also earmarks 3.9 billion dollars to assist local governments in purchasing and restoring foreclosed homes.

The bill, which is also being referred to as the “housing bailout bill,” is not just for those homeowners on the verge of foreclosure, as it also will provide some with an option to replace old mortgages with fixed rate terms, and provides breaks and tax incentives for new homeowners and veterans. House Speaker Nancy Pelosi says, “this legislation will help strengthen the housing market and create jobs.” Nationally, Realtors and homebuilders are hoping the new law will initiate a housing market turnaround. Amador County Association of Realtors President Joel Lesch thinks that it “will be more like stopping a leak,” as the number of foreclosures this year is expected to “hit 1.5 million” and the bill only “affects about 10% of the people.” Lesch indicated that the bill would be helpful, and that added together with other aid efforts such as the economic stimulus package, the housing market may recover over time. For a good summary of the bill’s provisions, go to www.Realtor.org and click on “News Media.”