The government is currently working on the rescue plan that they hope will save our economy. Meanwhile however, this plan may lighten the credit crunch but will, most likely, not immediately effect the housing slump that we are currently experiencing.

It has been forecast that the housing market will probably not begin returning to normalcy until mid 2009 or later. At this time we have many sub-prime mortgage borrowers going through foreclosures. The really unfortunate part is that the economy is so bad that we now have prime mortgage borrowers experiencing foreclosures and losing their homes. This, of course, has the potential to drive prices down even further.Being near a foreclosed home is a negative for any neighbors. Being surrounded by them almost guarantees your home value is sinking weekly and there is nothing you can do.

The areas of our country leading the way in home foreclosures are the same areas where prices rose at the fastest rate over the last few years. In August, California had one-third of all foreclosure activity, Florida was second with 14.5%, followed by Arizona, 4.7%, and Nevada, 3.9%.

The rescue package will most likely not resolve the housing market problems at this time, but they would most like be considerably worse if no package was passed by the government.

There is no doubt that layoffs are looming, leaving people without incomes or health insurance, and hard economic times are ahead for all of us. We can only hope that our economy will bounce back in the future and return us to the standard of living we’ve all been enjoying for many years. Meanwhile, it is time for everyone to stay constantly aware of their financial situation.