Obama’s Foreclosure Prevention Plan Isn’t Just for “Losers”
Right now, one of the biggest attacks on President Barack Obama’s foreclosure prevention plan is that it helps “losers” who made poor decisions on their home mortgage loans.
This is not entirely true.
One of the nice things about the Obama plan is that it also benefits those who made good decisions. And it also does some the Bush Administration foreclosure plan didn’t do: It encourages people to be responsible and rewards them for continuing with their mortgage payments. The Bush plan encouraged delinquency, since you couldn’t be helped until you missed three mortgage payments.
Indeed, Real Estate Pro Articles points this out about those who won’t be eligible for help under the new foreclosure prevention plan:
Gibbs pointed out that Obama’s foreclosure plan clearly had exceptions. He said that among those who will not benefit from the program are homebuyers who in the first place were not qualified to take a mortgage loan, homebuyers who were speculating on home prices and borrowers who no longer have sources of income to continue monthly payments.
It is also worth noting that there are refinancing options for those who are not faced with foreclosure. This plan makes it possible for me to refinance my home to a lower rate, even though I am not having anything near like foreclosure trouble. Additionally, preventing foreclosures can help current homeowners maintain their home values. Remember: A foreclosure in your neighborhood doesn’t just affect the “loser”; it affects your home value and your potential selling price as well.
Finally, on a more personal note, I am a little annoyed about this outrage. We have moved past the point where this foreclosure crisis is a product of poor decisions. Now people who made good decisions are in danger of foreclosure through job loss. Unemployment is up, and that is one of the reasons for some of the most recent foreclosures.
The other question I have: Why aren’t these good people more outraged about the “loser” banks CEOs that are fighting for their bonuses and that have been using taxpayer dollars to go on swanky junkets and throw lavish parties? Why the outrage over fellow regular folks receiving some help, but apathy toward the top-down greed that was a major contributor to this whole mess?
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