The New Auto Rescue Plan - How Will This Affect You If You Need Help With Foreclosure?
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.
Sant, A. (2008, December 19). The New Auto Rescue Plan - How Will This Affect You If You Need Help With Foreclosure?. Retrieved December 26, 2008, from http://ezinearticles.com/?The-
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