RISMEDIA, Oct. 22, 2008-The Emergency Economic Stabilization Act of 2008, also known as ‘the bailout bill’ that has been dominating headlines in recent weeks, has real estate leaders talking about its impact on the industry, real estate markets around the country and the overall effect on consumer confidence when it comes to buying and selling.
RISMedia recently interviewed several industry experts on the subject and is presenting their comments in a regularly occurring series called, “The Bailout-Looking Ahead.” Here, Harley Rouda, CEO & Managing Partner of Real Living in Columbus, Ohio offers his thoughts about the bailout, what it means to consumers and the government’s new role in real estate.
RISMedia: Was the bailout necessary and do you support it?
Harley Rouda: In spite of the real estate market turmoil, the bailout was absolutely a necessity. It’s a critical step toward moving in the right direction. This is a Main Street issue created by Wall Street. As long as what’s been done helps Main Street, we should support it.
RISMedia: What will be the bailout’s effect on consumer confidence in the real estate market?
HR: I think it will be positive; however, there are a significant number of consumers that didn’t think the bailout should happen. For them, it will take some time. As they learn more about the rescue plan and how works, they’ll realize that ultimately it will be a benefit in a number of ways-not just on the housing market, but on job security, creation and in other areas.
RISMedia: Do you think the bailout will help consumers get back to buying and selling?
HR: A lot of things need to happen. At the root of it, though, is the stabilization of the housing market-everything from pricing to lending. The root of the problem started with the housing industry.
RISMedia: What do you think about the government’s new rights (within the bailout bill) to purchase foreclosed homes and refinance them at their current value so that homeowners can stay in the home?
HR: The government should get more involved; the rescue plan is the start of that. They should purchase underperforming paper from the banks (which, as of press time, was being considered). The predominant paper that these banks have is for home mortgages. The mortgage terms should be reset with the original holders. However, the execution and perimeters set is critical.
Stay tuned for a full report and analysis of the bailout bill and how it will affect the real estate industry in our November 2008 cover story in Real Estate magazine!
For more information on Real Living, visit www.realliving.com.
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