Bush Signs Housing Bill to Help Provide Mortgage Relief

Today, July 30, President Bush signed a bill that will allow mortgage relief for nearly 400,000 homeowners, according to the AP. The bill, which he almost threatened to veto, will allow Americans to refinance their homes into a more government backed mortgage. The FHA will require lenders to show how high a payment can get under the borrowers terms. The bill was passed to help free up tighter credit crunches caused by falling home value and rising defaults. Bush was hesitant on passing the bill due to the companies that contributed to the mortgage crisis, but realized homeowners cannot wait any longer.

Living in Michigan, values of homes are decreasing and jobs are disappearing. Jobs are a dime a dozen in even the most populated areas that once bloomed such as Flint. The failing auto industry has contributed to the failing economy in Michigan.

As a result of the diminishing jobs, my roommate of 4 years has been laid off, tightening our income as he works a part-time job in a restaurant. Even then, tips and wages aren't consistent enough. Falling behind, my monthly mortgage payment of $900 has been in default. Behind more than a month, I'm facing foreclosure at 22 years old. With limited jobs, I am unable to pick up another job just to make ends meet. Not to mention the price of gas along with rising food prices. Though Michigan does not have a food tax, the $4 spent on a gallon of milk make it tough to catch up on bills that may be behind.

For the past month that my account has been behind, I have been attempting to work with several lenders to refinance. However, due to credit restrictions and tighter credit, I have been unable to get a sufficient loan. I do not have any extra equity taken out on my home and I have made several improvements since purchasing the 3 bedroom home. The remodels have increased the value by several thousands of dollars.