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: 15-2008-11

This Issue Number, Category and Headline: Issue # 5 - Real Estate / Stop Foreclosure - Bailout Ways Out Update

By Guy Te Watson


In a press conference on November 12, 2008 U.S. Treasury Secretary Henry Paulson announced the original plan to buy up toxic bad debt from banks and relieve the foreclosure problem in the United States of America is being scrapped.

The idea of buying up bad debts was at the core of the 700 billion dollar financial rescue plan.

Buying up these bad debts to help people get out of foreclosure is now abandoned at present and it is being replaced with investing funds directly into troubled banks and other institutions to unclog the markets that fund consumer debt.

The Secretary said - the government instead of purchasing distressed assets that banks hold - they will use the money to strengthen up not just banks but auto loan providers, credit card issuers, and other large but non-bank entities.

He says the government is spending $250 billion of the bailout money to purchase stock in banks to supply the banks with the needed capital to make new loans and improve US credit markets to get the economy moving again.

So far with this change taking place no money is in the plans to be spent to directly help the distressed homeowner out of foreclosure.

At this time it looks like - motivating the banker to treat you fairly by showing him you know where he violated the law in your mortgage and you can beat him in court - a more indirect path is the way to go to get some of this bailout out money since again the Secretary says the money will be given to bankers to make new loans. Remember, this is one of your goals, to get the lender/banker to make you a new loan with better terms and conditions, so that you can better afford to stay in your home.

Also consider, all banks will probably not receive money from this bailout, so whether a bank (like your bank/lender) gets money from this bailout and is a participating bank may be a factor in you being able to benefit from the bailout; only time may tell.

So it appears that unless troubled homeowners start calling and raising their voices about this drastic change from the original purpose of the bailout, using the indirect way of getting some of the 700 billion dollar bailout money working for you is the only way to go at this point.

 

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