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just hanging around asked:
i have a friend near foreclosure. i have been hearing that the government is going to help out. thank you for your help
i have a friend near foreclosure. i have been hearing that the government is going to help out. thank you for your help
Tags: Foreclosure, Foreclosures, Government Help, People
September 29th, 2008 |
Tags: Foreclosure, Foreclosures, Government Help, People
October 3rd, 2008 at 2:10 am
I hope , hun that you can get awesome answers for this one, Because Im also curious about this question also…God Bless you..You read my mind…lol..TC;)
October 3rd, 2008 at 5:57 am
The government has stepped in with a few different policies and programs. Here are a run-down of the most well-known ones so far.
First of all, the Federal Reserve has been creating new money out of thin air to give to the banks. They have been injecting tens of billions of dollars into the banking system and are talking about $200 billion more in the near future. This is inflating the money supply and causing the dollar to fall in value. The price of goods like food and energy are going up dramatically, which hurts the people who need to eat and go to work. But it bails out the banks and helps them cover their poor lending practices.
HOPE NOW and Project Lifeline are two voluntary programs the government has put together. Essentially, they are media relations programs where about 6 major banks in the country are voluntarily offering homeowners various programs to save their homes. This might be through repayment plans or loan modifications. But these have always been offered to homeowners who can qualify for them — putting a fancy new name on them does not change what the programs actually do.
And that’s about all so far. Monetary bailouts and voluntary programs for the banks. Inflation and currency collapse for homeowners.
Your friend is probably much better off trying to negotiate with the bank right now and try to work something out, rather than waiting for a different government program. There are some proposed changes to bankruptcy laws, but nothing is set into law yet and certain members of Congress and the banking industry will probably be successful in blocking the changes.
Good luck.
ForeclosureFish