Election 08: Which Candidate is Best for Real Estate?

Now that it APPEARS we have our two Presidential candidates, the question might be, "Which candidate is best for real estate?"

It’s not clear what role the next president will have in shaping the government’s response to the foreclosure crisis, because it’s unclear what the housing situation will be and what Congress will have accomplished by Jan. 20, 2009. Each candidate, however, has expressed views on what lawmakers and lenders should do.

Although initially opposed to additional government aid in the mortgage mess, John McCain has joined Barack Obama in supporting the idea of the Federal Housing Administration backing loans that lenders have written down to affordable levels for borrowers. But the plans they support differ somewhat.

Obama backs a proposal that would require borrowers to share equity with the FHA when they sell or refinance their home. McCain has proposed the "HOME Plan," which blends elements of the plan Obama supports with proposals from the Bush administration and the Office of Thrift Supervision. Under McCain’s proposal, if a borrower sells his home with a gain, the lender and the federal government each would receive a portion of the equity.

Beyond more help from the FHA, Obama has called for a $10 billion foreclosure prevention fund to help victims of mortgage fraud sell their homes or modify their loans so they can avoid foreclosure and bankruptcy.

McCain has called for the creation of a Department of Justice task force to investigate mortgage crimes involving lending and securitizing home loans.

As we get closer and closer to November, we will try to keep you informed here as to which candidate is promising what when it comes to the real estate industry.

Do you have an opinion (at this stage of the campaign) as to which of the two presumptive candidates might be best for the long term recovery of the real estate industry? Leave us your comment or opinion by clicking the "comment" link below.