Are You Waiting On A Federal Bailout Plan To Prevent Foreclosure

Posted by Faizan Shiwani / at 4:45 AM / /

I want to talk briefly about the government's bailout plan, to prevent confusion and to motivate people to seek other assistance. Obama's plan to stop foreclosure is not effective! They are claiming to have helped 200,000 people up to this point (I don't believe this is accurate, because I have yet to see anyone who has been approved, and I see 100's of cases a day), but there are still millions of foreclosures out there and many more happening every day.

In many professional opinions, the government bailout plan is only capable of helping people who don't actually need it. The only people who seem to be getting help are the people who would have likely saved their home either way, without the help. I think it's crazy that the government is taking credit for these 200,000 saved homes, when percentage wise, the plan is a failure.

Before this plan was written, there was a 90 day moratorium on foreclosures, which stopped lenders from foreclosing on many properties. Everyone thought that before the moratorium ended, the bailout plan would be in effect and they would be out of trouble. This was a cruel way to give homeowners hope, since the bailout plan was never going to help most of them.

As the plan is currently designed, financial guru's believe it will help less than 20% of people losing their homes. Still, nowhere near 20% have saved their home, because lender participation is not mandatory. And even though many banks claim to be participating, they don't really understand what to do or how to participate. The guidelines are too complex and they don't really understand who can apply and who can't. They are just accepting applications and telling foreclosure victims that they are "working" on the case, or that it's in "processing" and they will have an answer soon.

Then, while the victim thinks they are getting help, the house is sold at the sale and it's gone forever! When they ask why the home was sold, "We're sorry, your case was not approved" is the only answer they get. Well thanks for the warning and thanks for leaving me homeless with no time to find another solution!

When a foreclosure victim is looking for assistance, it's more apparent than ever now, they need to find it somewhere other than the government or their bank. Foreclosure victims don't have the time, patience, or knowledge to stop a foreclosure, without professional assistance. There are a handful of lenders who will help a homeowner, but if you're not getting the help you need, you need to seek help from a professional as quickly as possible to avoid losing your home forever.