The rapid deterioration with the housing market can be tied into one specific area, foreclosed homes. The rapid increase of homes in foreclosure has resulted in billions of dollars in wealth lost over the past twelve months from home owners and lenders. Congress is working on plans to try to slow down the trend and provide the markets with some stability and incentives to slow down foreclosed properties.

Some of the ideas that congress is reviewing to help with the foreclosed home challenge are:

• Tax credits for the purchase of foreclosed homes
• Carry back losses for accounting purposes for home builders
• Increasing the amount of bonds states can offer to help refinance sub prime loans
• Counseling for individuals entering the foreclosure process

Fixing the foreclosure crisis is step one in helping to turn around the real estate markets. Congress should move quick to bring some needed relief to home owners.

4-4-2008©LowRateMortgage.com

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