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    2010 Mortgage Assistance Outlook
    During this financial crisis America’s housing market has been able to be used to predict what the general market will do. In 2009 the market went up some due to the home buyer’s tax credit. This credit gave first time home buyers up to eight thousand dollars tax credit if they bought at home before the end of 2009. The housing market rose due to this stimulus that congress passed but gave the market false hope. Clinging on to hope senate voted 98-0 to extend this tax credit for first time home buyers until April 30, 2010. This tax credit also extended a tax credit to existing home buyers for $6500 to encourage them to buy another home.
    What do existing homeowner’s have to look forward to?

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    The housing market does not look good for existing home owner’s houses during 2010. Even with the home buyer’s tax credit and low mortgage rates fueling sales home prices flattened in October 2009. This was due to the 3.2 million new and existing unsold homes in America which has created a seven month supply of homes for buyers.

    Predictions for 2010 Housing Market
    Many predict that the financial crisis will not improve until the government stops stimulating the economy and allow the economy to take its natural course. These stimuli are slowing down the economies full recovery because of the false rises in the market they are creating. After April, 30 2009 there will most likely be another dive in the market due to the false rises. This year there is an estimated 2.4 million homes that will be foreclosed on and added to the dive which will drive down prices another 10 percent. Only then will the market start to improve on its own without any help from the government.

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    Another Decline in the Future
    The next decline in the market could mean worse times for an estimated 16 million homeowners. Many homeowners owe more on their homes than they are worth. If this happens than many homeowners are likely to allow their homes to go into foreclosure and seek cheaper rent at another residence. Lender’s could prevent this by lowering the principal balance of these mortgages which would give the buyers lower monthly payments. This will prevent the lender from having unnumbered houses sitting empty on the market and allow homeowners to stay in their current home paying less, but many lenders refuse to take this immediate loss on the loans they have extended. Congress has attempted to change the law so that bankruptcy will force lenders to reduce the mortgage balances for borrowers, but lenders have been able to avoid this law and stop from being forced into this resolution.

    Is there A Hopeful Future?
    Although the economy is hard pressed the future will start to look brighter. There are many different approaches the government could use to help improve the financial crisis. The government should focus on job creation to combat the rising unemployment rate which in turn will allow the housing market to improve as more and more American’s earn a steady pay check.

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