Mortgage bailout

[hondo122]

Can someone with realestate experience explain to me what will happen to the value of properties if the government buys these mortgages a full face value then revalues them to current worth. My understanding is that this is done looking at recent sales of similar properties. That appears to give people that purchased overpriced homes a free lunch and will drive the value of nearby homes even lower, punishing those who didn't refinance at he inflated prices to purchase new cars, boats, RVs and other luxuries.

[hondo122]

Can someone with realestate experience explain to me what will happen to the value of properties if the government buys these mortgages a full face value then revalues them to current worth. My understanding is that this is done looking at recent sales of similar properties. That appears to give people that purchased overpriced homes a free lunch and will drive the value of nearby homes even lower, punishing those who didn't refinance at he inflated prices to purchase new cars, boats, RVs and other luxuries.

[Rick Long]

Not true at all.. They will simply be paying the price they should have been.. This would NOT apply to people that refinanced.. they would not get bought down. Only first mortgages would qualify. It will NOT effect your value.. in fact it will keep yours from going down because you won't have a glut of vacant homes in your area.

[hondo122]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Rick Long:
Not true at all.. They will simply be paying the price they should have been.. This would NOT apply to people that refinanced.. they would not get bought down. Only first mortgages would qualify. It will NOT effect your value.. in fact it will keep yours from going down because you won't have a glut of vacant homes in your area. </div></BLOCKQUOTE>

Rick, could you point me to where that is stated in the bailout plan? I refinanced in '99 to pay off medical costs, it's a first mortgage. My house is worth more than I owe by a long shot even in this current debacle, but what is fair?