Hippocrates In San Diego

Here’s hoping for some stimulation

N. and I have put an offer on a house in E [city].; the chaos of the last few weeks is what’s made putting up new posts lower on my to-do list. The offer has been accepted, and since it’s a short-sell (the current owner owes more than they can sell the home for) their bank needs to approve the offer before it can be accepted and move into escrow. We expect that to happen in the next couple of weeks.

The timing of this is going to be critical. The Congress is working on an economic stimulus package that will likely include a measure to increase the limits on Fannie Mae and Freddie Mac’s insurance of so-called conforming loans. Current limits are set at $417,000, which in California is far too low compared to the median home price. The proposed limit may be raised to anywhere from $650,000 to $729,000, and likely will only be in place for 2008. That price range is where we’ve put our offer on the house, so the exact amount of the new limit is going to be important for us as well. The Senate is expected to move toward a vote today, and hopefully the eventual bill will be signed by Bush in time for us to benefit.