Currently, there is a bill in Congress that could change the financial futures of 500,000 homeowners. For these individuals who are facing foreclosure, the bill could have significant influence. Since the bill has already passed in the House, chances are good that the bill could go into effect, helping the financial situation of half a million homeowners facing a potential foreclosure.

The bill would allow borrowers who were struggling with their monthly mortgage bills to refinance easily. They would be able to see more affordable and more financially stable mortgage choices through the use of federal aid. They would get a mortgage that was federally guaranteed by the government.

This bill has been created to help only homeowners avoid foreclosure. If an individual is an investor or speculator, they are not eligible for help with this home financial situation. Specifically, this bill is set to help the homeowners who are doing their best to cover their mortgage payments, but falling short due to unrealistic settings, not the speculators who are trying to make more money in the real estate market.

There is a catch to the federal bill, however. If the homeowner takes advantage of the effort and aid given by the government, the homeowner will have to split any future home profits on the sale of the home in half with the government. For those homeowners who do not plan to move from the home for quite some time, this is less of an issue than for those homeowners who plan to move from the home in 3 to 5 years. Cutting the profits from the sale of the home in half can have a significant impact on the homeowners profit margins, especially since most individuals see the majority of their equity in the home they own.

There are arguments from taxpayers as well, and for good reason. The bill will cost taxpayers 1.7 billion dollars, according to the Congressional Budget Office. Although the price seems high, it could have been worse when you analyze the impact of increased foreclosures in the country. However, many taxpayers are arguing that we are having to pay for the mistakes of these individuals who took a mortgage when they were not eligible and the taxpayers are paying for the mess now. In essence, the taxpayers argue, they will be paying for the greed of the financial institutions whose unrealistic mortgages and subprime interest rates attracted the wrong individuals to purchase a home.

However, foreclosures can have a tremendously negative impact on the economy and the overall quality of life in an economy with higher foreclosures will drop significantly. Rising foreclosures erase future profits in nearby properties and in the economy overall. This bill has been created to avoid the big picture fallout that occurs when more and more foreclosures happen in the real estate market. The sacrifice is the taxpayer dollars to help alleviate whatever economic crisis would have evolved from the higher number of foreclosures. Something needs to be done to prevent more foreclosures and this bill is the band aid that is thought to alleviate and reverse the trend in foreclosures.

So the Question is, as a tax payer do you agree that we have some responsibility to help out the over 500,000 home owners who are facing foreclosure and saying, how can I sell my house fast? Are you comfortable with our tax dollars helping stop the foreclosure crisis?