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Nearly two years have passed since Congress passed the controversial $700,000 billion Bailout Bill, which was delivered with enough blame and finger pointing to make every American's stomach turn. Realtors, brokers, lenders, and investors across the country were invested as long time friends of the industry Freddie Mac and Fannie Mae became center participants in this heated Capitol Hill debate and bailout.

The government bailout was originally aimed at making mortgages easier to obtain and afford for the homebuyers in America. At the time, this was welcome news to most on the front line of home buying and selling across the US. But as the past two years have unfolded, many in the real estate market have been left with the same questions and doubts that many other taxpayers have.

By the beginning of 2010, national headlines were screaming "Housing Still Needs a Lifeline".  But now, the number of taxpayers questioning the bailout has grown. Many within the real estate and finance industries felt it in the pit of their stomachs when they heard that on the eve of December 24^th 2009, the US Treasury Department uncapped the credit line for both agencies.

Realtors, brokers, borrowers and lenders alike were left reaching for a bottle of Pepto Bismol when hearing that this latest bailout came only hours after the companies said that their chief executives would be paid up to $6 million on an annualized basis for 2009. Furthermore according to the NY Daily News, in addition to the CEO pay, 10 additional executives at the two companies are eligible collectively for $30.1 million in compensation for 2009. 

By early Feb. 2010, HousingWire stepped in to offer this report on TARP. Meanwhile, with the 2011 budget at hand, the Obama administration stands steadfast behind the bailout pledging to back the troubled mortgage finance giants regardless of the size of their losses.

Also in early February, FoxBusiness released the article:  "White House Projects Lower Losses in Fannie, Freddie; Analysts Skeptical". Obama's Administration holds an optimistic outlook, while other analysts and opposition predict a bleaker outlook. Meanwhile other government plans are forcing honest citizens who could make reasonable mortgage payments seek the shelter of short sales or bankruptcy leaving them without homes. Many really don't get the reasoning behind such policies. Others are left asking what happened to the $35 billion designated to modifying bad mortgages with 800,000 still awaiting results.

If this isn't enough to think about, look at this new can of worms opened up by Congressman Barney Frank. In this USA Today article Barney Frank, chairman of the House Financial Services Committee, is now calling for the whole secondary mortgage market system to be scrapped and to come up with a new one.

Based on the blogs they write, many on the front line of real estate sales don't seem to reflect the views of this drastic move. Obviously something needs to be done, but surprisingly this legislation actually has quite a bit of support up on the Hill. Please step in and give your opinion on this overwhelming subject. What are the rest of you thinking right now?

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Expect Rachel Valentino, DC area expert to be on top of the hottest topics. If you are in the market for a new home in the DC area, don't let the media news scare you off, Rachel will help you explore all the options still available to you. The door that opens for you just may put you into your next home.