HAMP Revamped
No body wants the government poking around in their affairs, meddling in their lives. That is, until they get into trouble.
When one or two citizens find themselves in difficult straits, it is unfair. When millions are similarly affected, it is a crisis. When we are in a crisis, many ask what the government is going to do about it.
Today, we are in a crisis. Perhaps you have already heard.
Up to now, the government – and I mean both sides of the aisle – has been rather ineffective in finding a remedy for the housing crisis. Americans wait, patiently for the most part, while our leaders try desperately to find their way through the worst financial nightmare since the Great Depression.
Today, The White House will unveil a new plan to relieve the debt burden of millions of Americans who find they owe more on their home than it is worth.
As the crisis has spread from sub-prime borrowers to homeowners with previously good credit, there is mounting fear that the number of foreclosures, already at a high number, will go even higher.
Many say that, until the housing crisis is remedied, it will be difficult if not impossible for the total economy to get moving again.
There has been a lot of criticism of previous plans, mostly because they didn’t seem to work and cost a lot of money.
But this one, at least, has some initial support. Financial analyst Howard Glaser, former HUD Assistant Secretary and graduate of Harvard Law School said:
“They have recognized that the complexion of the mortgage crisis has changed. This is no longer about risky sub-prime loans — its about home value declines that have made default a rational economic choice for homeowners,”
Read Mr. Glaser’s bio by clicking here.
Basically, the plan will utilize most of the $14 Billion (sorry, but when I write the word “Billion”, I always capitalize it!) left over from the TARP program and other parts of the bailout that were not used to let borrowers refinance up to 15 percent OVER the value of their principal residence.
This comes on the heels of a similar plan announced by Bank of America a few days ago.
Read about the Bank of America plan here.
This plan would be administered under the existing HAMP program (Home Affordable Modification Plan) by the FHA (Federal Housing Administration).
Read some of the past criticism of the HAMP program by clicking here.
Hopefully, this will be the remedy that gets the all-too-patient on the road to recovery.
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