Another Mortgage Work-Out Option Coming Our Way
The Federal Government's game plan to rescue the economy continues to look like a chicken with it's head cut off. Yesterday, it announced that the $750 Main Street Bailout, now will have to focus on the Banks, but the consumer can still pay for it. It has also announced that another mortgage rescue plan is heading toward the American Public. So, the three Hope programs are a bust. If you recall, we recently had the Hope for Homeowners Act. Before that, we had the Hope Alliance, and before that we had the Hope Hotline. This will be the fourth such piece of trash hurled at us this year. Do they think that this one will work. No, I don't believe such trash. As I have written many times before, the legislation has no teeth. Here is my take on the new legislation. Interestingly, I call it new legislation, but I have not actually seen anything in writing. The only thing that I have seen is the press release from the Federal Housing Finance Agency.
If we look at this last attempt for what it really is, a feeble attempt to stop the new president from amending the bankruptcy code to fix the foreclosure problem. What? Is that really true? You better believe that the wool is being pulled over our eyes again. Think about it for a moment. As the economic downward spiral continues, more and more people are realizing that it is not good to be underwater on your mortgage. President Elect Obama has stated on numerous occasions that he will work quickly to amend the bankruptcy code.
If he were to honor this promise, the mortgage companies would lose all control over the mortgage modification process. That is what prompted the last few initiatives. Now that the Republican have lost control of the Congress and the White House, things are going to change. Isn't it amazing how the number of announcements about helping homeowners has increased since the election. I find this outpouring of love and sympathy truly remarkable. However, the Federal Government's latest proposal again falls way short, and the best part of all is that all of the details of the plan still have not been released and won't be released until December. By then another 100,000 foreclosures will probably be filed.
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, and Naples and has expansion plans for Sarasota. Mr. Dellutri also sits on the Board of American Board of Certification. Mr. Dellutri is also one of the founders of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri also writes for the firm's personal injury litigation blog.
