“As the Obama Administration carries out the Emergency Economic Stabilization Act, our actions will reflect the Act’s original purpose of preventing systemic consequences in the financial and housing markets…. The Obama Administration will commit substantial resources of $50-100B to a sweeping effort to address the foreclosure crisis. We will implement smart, aggressive policies to reduce the number of preventable foreclosures by helping to reduce mortgage payments for economically stressed but responsible homeowners, while also reforming our bankruptcy laws and strengthening existing housing initiatives like Hope for Homeowners.”

– This is an excerpt from a recent letter that Lawrence H. Summers — the National Economic Council Director under newly-elected President Barack Obama — sent to congressional leaders about how the remaining $350 billion of Emergency Economic Stabilization Act (the now infamous bailout plan) will likely be spent moving forward. It’s hopefully good news for distressed homeowners, providing much-needed relief for families nationwide who need it most. The housing issue promises to be one of many issues that Obama and his administration intend to tackle right out of the gate.

The New Year is a time for new beginnings, which is the reason we went back to the basics in our first edition of “Investment Exchange” — our free educational real estate newsletter — in 2009.

We touched on the “Big Three” foreclosure investment options, as well as the steps you need to make to begin making (or simply saving) money investing in real estate … and so much more.

Of course, it’s impossible to cash-in on these opportunities if you don’t get your feet wet, which is where most so-called “dreamers” fall short. Indeed, taking the first step is the most important, as well as the most difficult.

But we’re determined to start you off on the right foot.

It’s common to double or even triple your money in 90 days or less in real estate in today’s current market. You’d be hard-pressed to find a fund on Wall Street that guarantees that type of return on investment in such a short amount of time.

In fact, it’s more than likely impossible.

So why don’t more people take advantage of the seemingly endless opportunities around them and cash-in? It’s simple: Potential flippers and investors don’t know how or where to begin.

Until now!

The January 2009 edition of “Investment Exchange” has all the answers you need to get going … sooner rather than later. To check it out right now click here … it just came out today!

Let us show you how to capitalize on the amazing deals out there — it’s now or never!

“I think the most important thing when it comes to declining home values is number one, preventing further foreclosures. That just erodes home values across the board.”

– President-elect Barack Obama comments on the importance of preventing the recent surge of foreclosure situations from rising any further across the nation in a recent Associated Press article. The incoming administration, which takes charge January 19, is considering whether or not to direct “some of the remaining bailout money to foreclosure prevention.” There is currently about $350 billion remaining of the $700 billion that was earmarked back in late 2008 to revive the economy and inflate the credit market. The current plan on the table would provide lenders with incentives to modify loans that are either already in default or headed in that direction. It is estimated that the plan could prevent 1.5 million foreclosures.

It has been a rough year for real estate to say the least — home prices are down across the board and foreclosures are beginning to increase significantly because of the volatile United States economy.

The good news is that certain areas throughout the nation are weathering the storm quite well. In fact, a recent Kiplinger.com report indicates that “damage has been minimal — if nonexistent — in certain pockets across the country.”

Six cities, in particular, were highlighted in the study:

• Lancaster, Penn.
• Clarksville, Tenn.
• Albuquerque, N.M.
• Burlington, Vermont
• Pittsburgh, Penn.
• Johnson City, Tenn.

Fiserv Lending Solutions — a home-price research company — was the source for the data. It indicated that these areas experienced slow and steady growth, as well as kept unemployment and foreclosure rates below average.

Of course, this is just a sample list — there are likely numerous other cities, towns and regions that are not feeling the pinch as much as the rest. And over time that list will grow as things begin to turnaround and return to normal.

Let’s just hope that happens sooner rather than later.

More than 7.5 million American people — almost 15 percent of homeowners nationwide with mortgages — spent half their incomes or more on housing costs in 2007, according an Associated Press report that examined data just released by the U.S. Census Bureau.

In addition, about 19 million homeowners — nearly 40 percent of homeowners throughout the nation — are now considered “financially burdened,” spending at least 30 percent of their incomes on housing.

That’s bad news for countless families located across the United States who are finding it harder and harder to make ends meet.

Of course, hindsight is 20/20. And if mortgages were issued correctly perhaps it could have helped minimize the recent affects of the housing downturn on both sides of the deals (lenders and borrowers).

To do that, lenders and buyers across the board should have followed a safer debt-to-income ratio standard that historically hovers around 28 percent.

Here’s how that looks:

• Yearly Gross Income = $45,000 / Divided by 12 = $3,750 per month income

$3,750 Monthly Income x .28 = $1,050 allowed for housing expense

$3,750 Monthly Income x .36 = $1,350 allowed for housing expense plus recurring debt

Clearly, this is not the only reason behind the current economic mess, but it is certainly a contributing factor. Mix in balloon mortgages, rising debt, unemployment, fuel prices and several other ingredients and we can see the reason foreclosures are occurring and the economy is struggling.

For information on how to avoid and/or stop foreclosure click here.