The Bailout - Is it Right, or Wrong?
So How Would a Bailout Affect Real Estate?
Home Maintenance for October

As of the time of this newsletter, the big Government bailout of the failed/failing banking industry has become a big question mark where everyone seems to be asking, "Is this bailout a good thing, or a bad thing? Is it right, or is it wrong?" And since the House voted DOWN the package presented to them last weekend.. the big question now is, "Where do we go from here?" Talk is growing louder about alternative government steps that could help battered credit markets and stave off broader problems in the economy.

There are still many questions still need to be addressed before we can even begin to think about the long-awaited housing upturn. Issues such as:

• Will this move reduce future costs of obtaining a mortgage? Speculation is that the 30-year fixed rate may drop to 6% in the not too distant future.
• Will existing foreclosed homeowners get some kind of relief? If yes, how much, under what terms and why?

• Will potential new home buyers that currently do not qualify for a mortgage, now qualify for one? If yes, what has changed and is the market ready to handle this?

• Was the financial market over extended or are Fannie Mae and Freddie Mac flawed? If yes, how should they be changed to prevent this from happening again?

We'd love to get your feedback and opinion on this "Bailout" that may end up not bailing anything anywhere anytime. Leave us your comment at the bottom of this newsletter. We'd love to hear from you, and rest assured, your comment privacy protection is guaranteed, as we never publish comment email addresses here.

So How Would a Bailout Affect Real Estate?

If it worked as first presented (a caveat with all these comments) the $700 billion should help level off home prices. The huge infusion of money into the financial sector, designed to buy up the most toxic mortgage-related assets held by banks and others, should loosen up the mortgage market, making it easier for potential home buyers to secure a loan and get into the market. That, in turn, should stabilize prices, as more buyers make bids for homes.

How about mortgage rates?

Harder to predict, since rates are driven by many factors. But many experts say a critical issue driving the financial meltdown has been the all-but-frozen credit market — that is, the business of lending, whether it is banks to consumers, banks to each other or banks to companies.

The bailout plan was designed to reassure banks they can lend to others with a reasonable chance of getting paid back, and mortgages are one big part of the credit market. As home loans become easier to get, their rates could decline.

Where this will all wind up, and how it will eventually affect our buying power, and our selling power (for those wanting to sell homes) remains to be seen.

Tune in next month. Maybe by then, Congress will have decided something. To be continued…

Home Maintenance for October

We continue our monthly updates from The Weather Channel's home improvement expert Danny Lipford, that not only reminds you of what needs to be done and when, but also shows you ways to save money. 

Cold weather's on the way…

Take in or cover outdoor equipment. Clean and store the barbecue and patio furniture. Change the mower's oil, clean its blades and drain the gas. Call your town to find out about disposal points for the drained gas.

Test your snowblower. Make sure that all winter equipment is working.

Drain your lawn sprinkler system. Follow your system's winterization instructions. Also, store hoses and turn off the water to outside faucets, but leave them slightly open so that they drain.

Rake often. Aim for every week or so when leaves are falling. If you wait until the end of the season, the job will be much harder, and your lawn will be starved for sun. Buy a leaf blower if raking is too hard on your back.

Service your generator if you have one. Stock up on flashlights, candles, canned food and water in case of power outages.

Check back next month for your Maintenance Tip for November.