Success Of Government Bailout Plans - Are They Working?
The United States government is aware of the increased number of foreclosures in these troubling economic times
. Bailout plans have been put in place and it has been said that between 8 and 9 million homeowners have the possibility of qualifying for help to avoid the foreclosure of their home. However, what it comes down to is the question of whether these government bailout plans are working or not. This query will be explored here.
There have been numerous complaints in regards to lack of specific enough information for homeowners to be able to make use of the government bailout plans. They seek help from their lenders, but they have no specifics to give. Others claim a complete lack of help available at all. Settling on the reasons for the perceived failure of the government bailout plans is hard to accomplish as people are not eager to have their mistakes publicized or even admit they have asked for help and subsequently been declined assistance. There are no numbers to accompany the amount of people who have applied for assistance versus who have been denied or whether any loans were renegotiated. Obviously, the concern here is that the legislation behind these government bailout plans needs to be improved if the number of people who can find assistance with said programs are to be successful.
One of the main sections of government mortgage bailout plans is for the assistance of people who are stuck living in a home that will sell for less than the mortgage they still owe on it. This is equivalent to owning a totaled car, except there is no way out of being "under water" in your homeownership without losing a huge amount of capital. The help that government bailout plans offer is limited to those whose mortgages do not exceed 5% of the appraised value. This eliminates help to a large amount of people who need it the most.
The other important section of government bailout plans is loan modification. These are possible for people who have become delinquent in their payments for a month or two, but not yet faced with foreclosure actions. The possible modifications are based on the lender's discretion and can include anything from temporary suspension of payments, reduced interest rate or other creative changes. The success of this section of government bailout plans is dependent upon the individual lenders and mortgage situations.
