Today Congress finally passed an unprecedented $700 billion government bailout of the financial and credit industries and it should be signed into law soon by the President if has not happened already.

Whether you were for it or against it, it was going to affect you whether it passed or not. Even though the focus was on Wall Street, the real problem was in our credit markets. It was getting to the point that banks were not loaning to one another, let alone to businesses and private sectors. Small businesses were finding it hard to meet payroll without the common short term lines of credit that they used to have to function as working capital. Credit cared companies were cut cardholder credit limits (which may not have been a bad thing) and car loans were harder and harder to come by. In the end the consumer was going to pay for it with a potential crash in the economy not seen in our lifetime.

Now the consumer will still get to pay for it, but hopefully without the drama of a failed economy.

It is now back to the basics for everyone. The government will buy off these bad loans that are choking our lending institutions at a discount and hold them until such time the real estate markets come back (and they will come back, they always do.) At that point in time when there is more equity in the homes the loans can be sold back to the private sector most likely at a profit and the hope is the profit will be used to pay down the $700 billion dollar debt before anything else is done.

Once these bad loans are off the books of the banks, then they can start to lend money again to other banks, to businesses and to regular consumers in the form credit cards, car loans, and home loans. Dont worry that the banks will just start lending crazy again which got them all in trouble. The lending criteria have all been tightened so the lending will go back to the basics. But at least now there will still be some lending going on which will ultimately begin to drive the economy back in all week sectors, real estate, mortgage and eventually Wall Street.

This bill will pump credit liquidity and eventually confidence back into the market which was desperately needed.

What does this mean to you? If you were sitting on the fence thinking about buying a home, now is the time to do so while interest rates are still excellent and before you start competing with everyone else who has been sitting on the fence thinking about buying. If you are thinking of selling, now is a good time to get your home on the market because lately, our housing inventory had actually gone done a little bit and the buyers will be coming.

Nobody is expecting a speedy recovery, and there may be some more bumps in the road along the way, but the recovery is coming nonetheless.

If you know of anyone looking to buy or sell, please provide me with their contact information so I could at least talk to them. Your referrals are the life blood of my business and I hope you know by now that I will take very good care of them.

Take care and have a great Friday!