Monday, January 30, 2006

I sold my house... NOT!

Well, I just found out today that our Lakeview house, which has been under contract for the last month, is now going to be up for sale once again! The contract fell through because Randi, the girl I was dealing with, couldn't get the financing! Rich and I were really scared about this but there is really nothing we can do at this point. We were basically a casualty of the Baker's Bill.

To help you understand what it is (which is kind of confusing- I copied and pasted this from the TP)
" Baker's bill, which enjoys broad bipartisan support among Louisiana politicians and planners, would create a public corporation financed by the sale of federal bonds. A board appointed by the president would use the proceeds to offer buyouts to the owners of flood-damaged homes for at least 60 percent of the equity based on pre-Katrina value. It also would pay off the mortgages, heading off a possible wave of foreclosures.

Unlike the block grant approach, Baker said the corporation would attempt to recoup some of the money -- and fuel the economic recovery of the region -- by selling tracts of land to developers who would rebuild communities according to local plans.

The bill passed a key House committee 50-9 in December but stalled in the final days of the 2005 congressional calendar. The White House was noticeably mum on the bill until Wednesday, when Bush's hurricane recovery chief, Donald Powell, came out against it. He said it would add a needless layer of bureaucracy, run up astronomical costs and return less than what Baker has predicted. The president himself echoed the complaints a day later.

Instead, the administration has urged Louisiana to tap $6.2 billion in Community Development Block Grants awarded to the state this week to help uninsured homeowners outside the flood zone, a plan assailed by Gov. Kathleen Blanco as "a kick in the teeth."

Because this did not pass, banks are asking for additional homes, etc.. as collateral for financing, which many people don't have clothing, much less additional property for collateral. So now- we have to try and find a buyer with straight up cash. More to come... I'll keep you posted.

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