Feb 22 2009
A Breakdown of How Obama’s Plan Will Affect You
Part of President Obama’s proposed stimulus package specifically addresses three ways in which he intends on greatly reducing the number of foreclosures facing the nation today. For people currently behind on their mortgages, the interest will be reduced so that the total payments made to the bank each year do not exceed 30 percent of their annual income. For homeowners who are currently upside-down on their mortgage and owe a lot more than the house is currently worth, the President is suggesting incentives for the banks to reduce the principal amount and modify the terms of the loan around this new lower principal. The third part of the plan would allow bankruptcy judges to modify mortgages, but only mortgages closed before the law is enacted are eligible.
However, what no one seems to be mentioning is that there is no moratorium on foreclosures and that all of these new programs will only work if the banks take the initiative to implement them. The banks truly do want to rework these loans and keep good borrowers in the properties. They are not in the business of real estate; they are in the business of lending. However, the banks are so overwhelmed that by the time they get around to working with the borrower, a foreclosure judgment has already been entered.
In order to truly benefit from President Obama’s stimulus package, you will need to know how to stall the foreclosure proceeding long enough to work something out with the bank. Learn how to stall your foreclosure for as long as you need at www.ForeclosureDefenseSecrets.com.
