Late yesterday Congress passed a revised version of the economic stimulus package, which is expected to create jobs (up to 3.5 million of them) and get the economy chugging once again.

The $787 billion plan will be likely signed into law on Tuesday, Feb. 17 by President Barack Obama.

We passed along news earlier this week that the proposed $15,000 tax credit for homebuyers was stripped from the bill even though it has received Senate approval. In a compromise, the existing $7,500 tax credit for first-time homebuyers was increased to $8,000 and extended five months from from July 1 to Dec. 1, 2009.

In addition, and perhaps more important, homebuyers who take advantage of the program are not required to pay back the $8,000 credit unless they sell their homes within three years.

That’s a tantalizing incentive for a lot of folks eager to achieve the American Dream and cash-in while home prices across the board at all-time low levels. Now, they can shave an additional $8,000 of the sale price, which is already drastically reduced if you search for deals on Foreclosure.com.

But what about the people who are struggling to remain in their homes?

President Obama has indicated that he will now shift his focus on the foreclosure issue, as well as other preventative housing initiatives. He is expected to outline his mortgage and foreclosure relief plan later next week during a speech in Phoenix, Ariz., on Wednesday, Feb. 18.

Stay tuned.

Last week, elected officials in Washington, D.C., proposed a new $15,000 tax credit to encourage people to start buying homes and, in turn, jump start the national housing market.

It was a nice incentive, which would have provided all homebuyers (not just first timers) with up to $15,000 (or 10 percent of the value of new or existing residences) to put toward their real estate purchases.

Unfortunately, the money-saving measure was today cut from President Barack Obama’s $838 billion economic stimulus package, which had recently received bipartisan support from Senate members. The House of Representatives trimmed the bill to $789 billion and left the $15,000 tax credit on the cutting room floor.

The good news is that there was a compromise — the $7,500 tax credit was bumped up to $8,000. This program provides first-time homebuyers with monetary incentive to purchase foreclosures. In addition, under the terms of the new language in the revised bill, the $8,000 does not need to be repaid (previously it had to be paid back at zero interest within 15 years).

It’s expected that a final vote on the revised $789 billion economic stimulus packaged could come as early as tomorrow (Friday). If it is approved it would then head to the desk of President Obama where it would more than likely be officially signed into law.

Stay tuned.

Foreclosure.com Founder, President and CEO, Brad Geisen, had this to say in a high profile Associated Press interview back in June 2006 regarding the looming housing market crisis:

“Adjustable Rate Mortgages [ARMS]are a ticking time bomb. I’m pretty sure we’ll see a high volume of foreclosures.”

Bloomberg News columnist John F. Wasik today ran a story with the headline, “U.S. Mortgage Time Bomb Needs Defusing Yesterday,” saying the following:

“Of the $200 billion of these [ARM] loans outstanding, almost $30 billion is due to reset this year and $67 billion in 2010…. The resets inflict more trauma on the U.S. housing market. The average option ARM monthly payment will soar 63 percent — or $1,052.”

Brad and several other knowledgeable industry experts were able to see the “toxic mortgage” trouble coming several years ago even when the housing market was moving.

That’s because “balloon” loans are a big factor behind foreclosures, affecting millions of homeowners nationwide who become unable to afford their mortgages when interest rates “adjust” to higher percentages.

Unfortunately, it appears that the problem could continue well into next year if swift action is not taken — something that should have happened “yesterday” indeed.

“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!