Welcome to another edition for our Ezine-Newsletter as always you will find some very useful and sometimes very revealing information. Best of all its free so tell your friends.

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God Bless!

Guy Te

Date of Newsletter: 15-2009-03

This Issue Number, Category and Headline: Issue # 9 - Real Estate / Stop Foreclosure: Problems with the Obama $75 Billion Dollar Foreclosure Bailout Plan

Many homeowners are depending on government to bail them out of their foreclosure problems, but like its predecessors the Obama $75 Billion dollar plan is likely to be a huge waste of valuable time for homeowner in their search for help to stop foreclosure.  Here are a couple of the flaws with the plan that will likely make it just as ineffective as the $300 and $700 billion plans before it.


Problem 1 - Lender Voluntary Participation and Honesty:

For starters, in order to see if you quality for a loan modification using the Obama “Making Home Affordable” program you have to call and ask your lender to see if you qualify for the Loan Modification portion of the Obama plan. That means that lender has to voluntarily participate and give you an honest evaluation within a short period of time or you can lose your home waiting for the lender who is taking/foreclosing on your home to say you can stop them from foreclosing with the Obama bailout. It’s craxy!!! The one who is seeking to take your home has to be the one to tell you you can stop them.  Nuts!!!

The above type of procedure being used i.e., the Lender being involved in determining if the borrower qualifies, totally and completely presupposes that the lender will be objective and honest in the evaluation because they don’t really want to foreclose on your property.  The idea that lenders don’t really want to foreclose is garbage. They most certainly do want to foreclose and make money on reselling your home and if you let someone convince you otherwise, well, that is a big step towards losing your home in most cases. 

Bankers want to foreclose to make more money off your home so why would you believe they are going to tell the majority of people, or you, the truth as to whether or not they qualify for the Obama bailout Plan. It’s not going to happen.  Lenders will use the fact that you have to ask them, if you qualify, to waste as much time as they can of the time you have to fight them and stop foreclosure by some other means.

The same group of liars that have cheated people for years by not truthfully disclosing information to borrowers about loans to the point that government had to create strict disclosure law like TILA and RESPA and HOEPA, which law the lenders violate routinely also, these same liars people are asked to, and made to, trust that these liars (who routinely do not fully disclose the truth) will tell the homeowner the truth about the homeowner qualifying for a Bailout plan, whether the Obama Bailout Plan or the earlier $300 and $700 billion dollar bailout plans, both huge flops.

There has been no plan to date that has put strict requirements on lenders to modify or refinance loans for people in foreclosure and this has been a major flaw in all the bailouts the Obama bailout included, so far, unless that changes at some point.


Problem 2 - The Loan to Value Requirements are To Hard to Meet:

Another major problem with the Obama $75 billion dollar bailout plan is that for his Refinance portion of the plan the loan to value requirements are such that most homeowners will not be able to qualify for the plan. 

Since housing prices have gone down significantly in the last couple of years the market value of many homes has dropped 20% of more

The Obama plan only provides that if your current property value is 5%, or less, than your actual first mortgage you can quality for the refinance plan.  That means that most people whose property values have dropped 5% to 30% or more will not qualify because the Obama plan says your property value can only have gone down to not more than 5% of your first mortgage for you to quality for a refinance and that the mortgage must be owned or securitized by Fannie Mae and Freddie Mac.

These are only a couple of major problems with the Obama Foreclosure Bailout.

So after you research and see if you will qualify for any and all of these bailout plans, don’t just sit around and wait hoping one of them works because the track record for a government bailout plan working is worse than lousy.  Seek help to find out other ways to stop foreclosure that does not depend on the lender or the government helping you out which has not seemed to work for most people.

Chat with an expert about help to stop your foreclosure Today.  Go to:
http://Help-To-Stop-Foreclosure.net  Click Here!!!
 

Without Prejudice - All Rights Retained
Copy Claim June 2008, Watson Lord and Watson - Guy Te Watson