How will the takeover of Fannie and Freddie affect you?

The big news this last Sunday was the takeover of Freddie Mac and Fannie Mae by the government. Forget the Obama/Biden and McCain/Palin????? tickets for a moment.
Many are wondering how this will affect them. For starters, Fannie and Freddie will continue to buy, bundle and sell home mortgages to investors. With the governments ownership comes the sense of security that was lacking up to this point. Investors, both foreign and domestic can rest assured that these two giants will not go under. The premium that investors were asking will come off, and this may drive interest rates lower, resulting in increased lending. The ultimate goal is to infuse new life and hope in the housing market and the economy in general.
If you have a mortgage currently, nothing will change, you do not need to call your lender today, you may do so in the future if rates begin to drop.
If you owe more than your house is worth, this takeover will not pump your property value at all. Look for relief in the massive bill recently signed by the President for answers. Your lender may, starting in October modify your loan if you qualify for the new payment.
If your house is in foreclosure, the takeover will not mean anything to you.
If you plan to buy in the future, wait for the possible drop in the interest rates. You are in a good position because the prices are low and the inventory is high.
If you want to refinance, check the interest rates to determine if doing so makes sense.
The government's action carries lots of risks for us, the taxpayers: if property values continue to fall, the red ink will now flow directly to us. on the other hand if investor's confidence returns, the dividends will be lower interest rates, renewed activity in the housing market, drop in housing inventory and high prices ahead, and that is a big if.
With or without the takeover, consumers have to continue to live with tightened lending requirements: income, assets, credit are still needed to land a good loan. The takeover does not mean the loosening of any of those guidelines.
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