So-Called Bailout Plans Myths are worth Pondering On

I am one of the few people who believe that the Obama housing bailout plan is a good opportunity to save the millions of homeowners who are currently facing foreclosure. The economic situation of the country is currently at its worse, and I think that giving homeowners like you and me the chance to modify our mortgage terms to become more affordable is a welcome relief. However, lately, a lot of issues have been springing up here and there doubting its effectiveness.

They say that the Obama housing bailout plan has a lot of ‘mythical’ benefits. Going through the countless of blogs online that talk about similar topics has got me thinking whether or not all of these benefits are truly myths—unrealistic—and are products of overestimation on the President’s part?


Obama bailout plan

First of all, this new start is not as fresh as they want us to believe. How come they keep talking about new beginnings? It turns out that the idea of investing directly in banks to help them get through default loans and help with borrower credits was not an original notion. It is actually something the previous administration started.

Second, it seems that the problems will not go away with increased accountability as promised. Actually, asking banks for more accountability that get bailout funding is a great idea because people will be more confident in the government and the markets, that is, if done right. But one problem remains unsolved despite the promises of the state: many banks are still losing money which unfortunately inhibits their lending capabilities.

The third and most relevant myth of all is that this plan will actually stop foreclosure. After months of implementation, we are only provided with minimal results at best and foreclosure is still on the rise. The reason is because there are too many people (millions, in fact) at risk of or are already losing their homes, and these mortgages have become so complex due to broken components, bundled securities and the like. How can banks keep up with that?

You don’t necessarily have to believe it, but, like me, it would do you good to at least ponder on them.

Been Looking for Good Loan Modification Tips

I have been searching for some loan modification tips and the best one that grabbed my attention is this: be honest. And this means complete and accurate information. Some may be a bit tempted to skew away from the whole and entire truth. Sometimes, people are twisting the truth without even realizing it. This will just lessen one’s chances for a successful loan modification.

Everyone is looking for loan modification tips right now. I have been such a fool in the past because I spent all my equity unwisely when I bought this big house in Nevada. The expansion and development in Nevada especially near Henderson was really a massive explosion that I suppose was just running on debt. There was no real money backing up that industry. It was all founded upon loans.

Such news just makes me wonder just how effective capitalism is as a system. Surely this just proves that pure capitalism cannot rule. There must be more rules put in place in order to create a system that does not let too much greed benefit. There must be more government involvement in the overseeing of economics. We have all seen how corporations will eat up the whole world if they were left to their own devices. Corporate greed needs mitigation. The environment has already suffered enough. There are already so many victims from the works of such giant corporations. This newest bust is just another example of how banks and lenders got to greedy. They actually need to pay for their actions. Therefore, I would definitely say no the a lot of the actions of the Obama bailout plan. However, as someone facing foreclosure myself, I of course have to side personally with those who need government assistance in order to stop the foreclosure of homes.

FHA Loans Key Components

Everyone knows that FHA loans are easier to get than the usual or traditional type loan. An FHA loan is federally insured, it is not from the federal government itself. These loans made by the Federal Housing Administration has been made to insure mortgages so that lenders can be free from risk when lending to high risk people who desperately need to loan. This has been the case ever since 1934 when the FHA was created during the great depression. FHA loans are great options for those middle income borrowers.

These FHA loans have the following key components.

- These loans just have 3% down payment requirement. This is one of the lowest rates available in the market. Also, this down payment may be given as a gift thus making home ownership easier to get for those who are buying a house for the first time.

- These loans are also very low cost. The FHA approved loan system thinks about the priority of people who do not have high income. This means that there will be lower closing amount costs compared to the traditional mortgage.

- It is very easy for a lot of people to qualify for these FHA loans. This is of course by design. Even if you have mediocre or lower than average credit scores, you will not be shooed away from getting this loan. This is because the federal insure these loans so that lenders need not worry even if the borrower defaults.

- FHA loans have lower costs. This is because the interest rates are much lower than traditional mortgages and this really lowers the overall cost.

If you are in need of a mortgage loan consider going for FHA loans. These are provided by the government to help us citizens in our time of economic crisis.

FHA Loan: Needs More Bailout Money

There was something news worthy in the Mortgage Applications’ weekly survey. In this survey, it is said that more than three percent of mortgage loans. In the survey, it can clearly be seen that mortgages have been going down right now. It seems that not many people are applying for FHA loans even with the fact that the interest rates have been more affordable this week. Also, what is noteworthy in the findings is that FHA loans have been static right now. Last month, FHA loans shot up to more than forty percent, a record high since a couple of decades ago.

An FHA loan, contrary to what some people might think, is not a government funded loan. These are simply government insured loan mortgages. If the homeowner chooses to default, the government agrees to pay for the loan. The Federal Housing Administration or FHA is the organization that authorizes private loaners to have these kinds of government insured loans. There are a lot of people out there that does not want to avail ordinary loans because of the high interest rates and the unreachable credit requirements. The FHA approved loans is an alternative to these people since almost anyone can qualify even if one’s credit history is not so good right now.

According to studies and economic surveys, reports say that the FHA might have to get a some bailout money since an alarming amount of borrowers with FHA loan mortgages all owe a lot more than the real value of their mortgaged property. There should be, at the very least, two percent of the insured FHA loan on the funding reserves of the FHA. Last year, the number is down to three percent. Though the current numbers are still to be released, we are not expecting for an increase.

Of the Mistake that is the Obama Housing Bailout

A new Obama mortgage bailout is being proposed. People see that it is quite similar to the old one. The new Obama bailout moneys being injected is worth about 200 billion dollars. Again.



Why is it that the more someone tells you what you should do about your life or yourself, the more you hate it and you feel the need to rebel against the advice? At least that’s how it is for me. Perhaps it’s because I have been lectured so many times as a child while being hit with a belt. Perhaps it’s because I felt bullied or threatened. What is it that creates the pride that makes you hate admitting that you were wrong? That what you did made things worse. That it was your fault, your decision. And why is it that these kinds of feelings don’t usually appear in the issue of love. Is it because I knew too well the satisfying results of admitting your mistakes in love but not in other parts of life like work and responsibility? Perhaps. I don’t know. But what I am sure of is that the Obama housing bailout plan is a mistake. And the administration better fess up to it.

Everyone is fighting over the 200 billion dollar Obama bailout moneys distributed to Freddie Mac and Fannie Mae. So many people argue about the fact that the Obama administration is still working to create a kind of solution that only serves as a show move. A move to instill confidence back into the economy, but does not really have enough significant effects to raise it up on its own. The Obama mortgage bailout doesn’t even have a clear enough break down of expenditure. Please Mr. President, show us the money.

How Long Should you Wait for your Loan Modification?

The loan modification processing wait can be gut-wrenching. That's why it's important that you fill out the application forms and write the hardship letter just as your lender requires.

Many homeowners opt to use a loan modification company to ensure their paperwork is perfect. But if you're not comfortable with relying on paying for services that might not yield any results or are confident that you fit your lender's requirements, you can take some steps to avoid that loan modification processing time nervousness.

1. Before requesting an application, filling one out line, or getting in touch with a modification company call your lender's loss mitigation or loan modification department and ask for their requirements. You may also be able to get information on the programs they offer. Knowing what they're looking for is the first step in successfully getting a modification on your mortgage, and the amount it can help cannot be understated.

2. If you're not confident on your eligibility or ability to fill out the paperwork properly, it may be better to get assistance with your application. You can get assistance through trained FHA associates or through loan modification companies. Both services will help with your application and hardship letter, as well as try to get the best results possible from your lender. However; The FHA associates will do the services for free, while companies do not. Modification companies usually charge a fee for filling out the paperwork and if the modification is successful.

3. If you choose to do the modification paperwork on your own, do some research online about your lender. Some lenders are easier to get a modification from than others, and it could be a huge weight off your shoulders during the loan modification processing period to know not only exactly what your lender is looking for on your papers, but also the experiences of others who have worked with them.

4. After you have submitted your application papers, keep in mind that being approved takes more than six weeks, so sit back and try not to think about it. After about the seventh week, feel free to call the loan modification department and ask about your application. Most applications take eight weeks to be approved, but calling on the seventh might make you feel better about the wait.

Keep the above points in mind throughout the whole process, but don't stress out too badly while you're waiting for the approval. The loan modification processing time takes a while to weed out those who do not qualify, and if your papers show that you do qualify and you're sure that you filled them out properly, you should be fine.

Loan Modification Pressure

How you react under pressure is a true indication of your character. In difficult times, don't worry - face the facts and find a way to help yourself. This advice applies to financial circumstances as well, if you cannot pay your bills and especially your mortgage you need to do something about it. All may seem lost, but it isn't. You can begin by contacting your lender and telling them your situation. Take a look at the sample loan modification letters on this website, they will help you find out what to write in order to explain your circumstances and convince your lender to help you.

It is a difficult task to write a hardship letter. You will feel like you have made mistakes and lost control of your life. But you have to let the lender know all the details so they will want to help you catch up on your loan. It is not a fun position to be in, but it only gets worse if it is ignored. The situation is not going away and if you begin to deal with it, you can reduce your stress.

Be honest, be personable and be concise. There is no need to make things sound worse than they are or embellish the truth. Make sure everything you write is true and tell the banker how you got to this point. For example if your business collapsed or someone in your family became ill, tell how this impacted you financially.

A well-written hardship letter will cause the lender to empathize with your situation, learn about your circumstances and give you advice about getting your finances in order, maybe by helping create another way for you to pay your loan. Take a look at the Loan Modification Financial Hardship Letters on our website, and contact us if you think we can help you.

These Loan Modification Financial Hardship Letters will assist you taking back control of your finances and planning your future during these difficult times. A personalized letter that lets your lender know the details of your circumstance will open the door to renegotiating your loan and giving you hope for the future.