Being in favor of help for
homeowners facing the possibility or in need of help with
foreclosure, is very hard to pick a side or take a position
regarding the new White House Auto Rescue Plan announced Friday
morning by President Bush and the families who need help with
foreclosure. "In the middle of a financial crisis and economic
recession letting the auto industry go bankrupt is not an
option," said President Bush in his speech. "Bankruptcy is
unlike to work for the auto makers at this point," he added.
This Auto Rescue plan includes a
13.4 billion dollar in short term loans right now and a possible
4 billion dollars more in February.
The industry will have 3 months
to turn things around, or they will have to pay the money back
to the government and file for bankruptcy at the end of the
three mints period. But, my question is; how exactly are they
going to repay the money back if they end up go bankruptcy?
Now the question is: What this
Auto Rescue Plan means for homeowners facing or needing help
with foreclosure?
These are the facts: as more
money keeps going into bailout programs, but nothing really to
help with foreclosure, it is less probable that any real plan to
help homeowners facing foreclosure is going to come to life.
Do not get me wrong, the Auto
Industry needed the help, and if they would go bankruptcy we
would, of course have a ripple effect and more foreclosure would
be unavoidable. From this point of view, the Auto Rescue Plan
was necessary.
On the other hand; everybody is
getting tired of these bailouts, including the congress, which
did not approve this bailout in the first place.
So at this point I do not
believed that anybody would be very enthusiastic for even
another bailout even if it is for the housing market, to offer
help with foreclosure to people really in need, and that is
where we the homeowners are affected.
The Government keep printing
money to bailout everybody, but for the crashing housing market.
And I think this is a big mistake. We all know that all these
financial and economic problems originated from the housing
crisis.
I strongly believe that if the
Government had worked to fix the foreclosure crisis from the
beginning, others problems could have been avoided, and maybe
the whole financial crisis all together.
Remember the first problem was
the increasing rate of foreclosure, then obviously followed the
Financial Institution Crisis, as these institution started
running out of money. The Government should have focus on those
people who needed help with foreclosure in the first place.
If the Administration had
worked to resolve this increasing foreclosure disaster, they
would have fixed the financial crisis at the same time. Simple
economics: by putting money in to the banks; by purchasing these
mortgages, two problems could have been resolved at the same
time.
Unfortunately, our Government
took a different approach and started bailing financial
institution from the top down and no from the bottom up,
thereby, letting the housing market crisis to continue to
escalate.
At this point, with the
recession we are in, and with all the layoffs we are getting
everyday, and without a mortgage foreclosure program that works,
is getting even harder for homeowners to get help with
foreclosure in order to hold on to their homes.
You, as a homeowner, have to
find ways, whatever it is, to keep your home from go to
foreclosure. Letting your house going to foreclosure in the
middle of an economic catastrophe is not an option.
Fortunately, there are many
things that you as a homeowner can do to avoid foreclosure and
stay in your home for 24, 30 months or even more, even without
making any monthly mortgage payments and without require any
kind of help from Lawyers or Agencies at all. This means you do
not need to spend your hard earn money in this, you can do it on
you own.
Even if you have no job or not
income at all, you still can manage to hold on to your house for
a very long time, using certain tips and strategies. But you
need to know how to proceed, how to talk to your lender, and
what to do in every situation.
