Will the Financial Rescue Plan Directly Help Distressed Homeowners?
September 25, 2008
The country is in crisis and a financial rescue plan has been proposed. It is currently in the process of being scrutinized and negotiated on Capitol Hill. The primary objective of this plan is to serve as a significant springboard to pull us out of the current financial hardship the country is facing. The positive effects, once the plan has been implemented, should trickle down into the housing crisis and consequently help homeowners who are facing or certain to face a housing crisis of their own. But, will the plan have this desired result and directly address the needs of those homeowners? Most Americans are unclear as to how this plan will help their bottom line.
At Loan Mitigation Advocatessm, we believe that the central issue with the current financial crisis is directly tied to the number of foreclosures and delinquencies impacting the United States. To complicate things further, there are a number of homeowners that have loans scheduled to adjust in the near future. Consequently, many more of these homes are bound to meet a similar fate.
The financial rescue plan is necessary to point the economy in the right direction. However, we feel that it will not have the desired impact on the housing market. Homeowners who are in dire circumstances or are starting to feel the pinch due to their current situation should not rely on the plan as a band-aid or solution. In the here and now, this plan will most likely not make it easier to pay your mortgage, or stop your rate from adjusting, or minimize the depreciation your home is experiencing. If you are experiencing a hardship and are facing or certain to face a housing crisis, the best solution is to try to mitigate your loan yourself or to call an expert in loan modification.
To help shed more light on the financial rescue plans potential impacts to homeowners Diana Olick of CNBC recently put together a great article on whether the government will get involved directly with taking over your home mortgage. In particular, she attempts to answer the government’s probability with performing loan modifications or the restructuring of homeowner’s loans.
Comments
Got something to say?
Everyday, struggling homeowners call foreclosure and loan mitigation hotlines for help on how to save their homes. This is just a small sample of a larger problem. Foreclosures, short sales, adjustable mortgages, and financial or personal hardship have wreaked havoc in the marketplace. The need for loan mitigation is paramount.
At Loan Mitigation Advocatessm, we encourage homeowners to try and resolve their situation themselves. In many cases, the homeowner realizes the complexity of the situation and that they do not have the time, connections within the lending industry or negotiation power. This is where many homeowners turn to a loan mitigation advocate. The hiring of a specialist to handle the process from start to finish can ease an already stressed situation, reaping benefits long into the future, and most importantly, help you, the homeowner, stay in your home.
CORPORATE BROKER’S LICENSE #01858172