Chicago Relocation

What does the big fed takeover mean for you?

September 10, 2008

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Well, after 48 hours it’s old news that the feds are bailing out, with our tax money, our friends at Freddie Mac and Fannie Mae.  What does that mean for someone transferring into or out of Chicago?  In the short run, a few short term gains — If you’re in the thick of it, rates took a quick dive, but are likely to inch back up soon.  So if you’re already to pull the trigger this is a good week.  For those staying put (who wouldn’t be reading this blog anyway), those with delinquent loans have a fighting chance of modifying loan terms and ending up with some lower fixed payments.

The bottom line is we don’t know, at all, what the real long term ramifications are for Chicago’s market in particular, and the mortgage market in general.

To those of us complaining about our tax dollars going to the bailout – You’re welcome to complain, but the truth is we’re better off with this program than watching Fannie and Freddie go into full cardiac arrest.  If you think we spent a lot on this, imagine what that debacle would’ve cost you.  And at the end of the day, the government (i.e. “we”) will get our money back, so it may be better than a lot of other government programs out there!  I’m still glad I’m not a major shareholder in Fannie or Freddie.

For a less rosy outlook, check out the NY Times article.