Opportunity is Knocking

doorhandleIn July of 2008 President Bush signed the Hope for Homeowners Act to try to prevent about 400,000 homes from foreclosure.  Recently we found out that only ONE home was actually saved with this program!  Understandably the program did not work because it did not give any incentives for banks to modify mortgages.

The new administration has been determined to thwart the foreclosure rate since before election day.  In a previous post I discussed the plans for government assistance.  The $700 billion recovery package set aside $75 billion for this cause and will finally offer some opportunities for those in distress.  Last week the President took the next step and named the first six companies who will receive part of this money.  Chase, Wells Fargo, GMAC, CitiMortgage, Select Portfolio Servicing, and Saxon Mortgage will receive up to $10 billion of the $75 billion available.  The plan is to help about 9 million homeowners who may be near foreclosure.

With this kind of money in the hands of these large financial institutions, they are going to be willing to help this time around.  However, homeowners have to seek out the assistance and have the desire to save their homes.  I have spoken with so many who are just ready to give up and feel walking away is easier.  That is the easier way out; but not the best way or the smartest way.  There are options when you are in distress and there are people out there willing to help.  See if you qualify for a loan modification or refinancing today.



  1. It is obvious that the banks want to capitalize on this situation that they have helped create. If after the stress test that the banks have to undergo, we will see that many banks are stronger than we previously thought. The banks even though there is an incentive from the Obama administration,have a greater incentive to hold on to their so called “toxic assets” until the market turns around. If you go to the foreclosure sales on court house steps and see that the banks are not unloading the properties that they are holding. Has it occurred to anyone why the banks are holding on to these assets?

    That’s why you see them operate as though it’s business as usual. They want it both ways. And it seems as though they are going to get it going and coming.

    • @Wilfred Joseph
      Thank you for the comment. The banks have certainly taken advantage of consumers in the past and even still today. The new issue with credit card interest rates is a perfect example.

      However, the foreclosures do not sell on the steps because most of the time the amount to pay off the mortgage is more than market value. An investor can find a better deal on an REO property (bank owned property) rather than on the steps of the courthouse these days. At least that is what we are seeing in the Florida housing market.

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