President Obama and Real Estate

"Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost; jobs shed; businesses shuttered." - Barack Obama, Jan. 20, 2009

During today's inauguration speech, President Obama referred to the foreclosures that continue to strike so many American families. Now that he is charge of the economy, the country will be watching closely to see what policies he will implement to help fix the housing crisis.

There's been talk about the U.S. Treasury Department buying mortgage backed securities, which would allow Fannie Mae and Freddie Mac to offer mortgages as low as 4.5 percent. The idea is that such low mortgage rates would prompt more people to buy real estate. But there's been questions about this proposal, such as who exactly would qualify for these low rates and whether the rates would be available for mortgage refinancing.

Obama also supports a moratorium on foreclosures. Now that he has taken the presidential oath and foreclosures had a record increase in 2008, we can expect that he will release details in the coming days or weeks.

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