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Obama’s Housing Plan: Who Will Benefit?
In his speech in Phoenix on Wednesday, President Obama emphasized that his plan would help those homeowners who had acted responsibly. “It will not rescue the unscrupulous or irresponsible,” Mr. Obama said. “And it will not reward folks who bought homes they knew from the beginning they would never be able to afford.”
But the lines aren’t quite that clear.
Certainly, some homeowners who took out a reasonable mortgage and later lost their job will be helped. But people who bought too much house — and banks that allowed people to do so, or even encouraged them to do so — will also benefit.
As distasteful as this may be, it’s the only way to make a serious dent in foreclosures and, in the process, to help the financial system. …
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People that took out mortgages and later lost their jobs will be helped??? That’s not what I have found….the banks won’t help those that have Zero income…They do sometimes help people that have lost one of two jobs and still have some income coming in…I haven’t seen a bank yet help anyone that has actually lost their job and have no income…
The only option if one does lose a job and can’t make the payments is a short sale if the bank won’t help out or delay the payments.
Foreclosure is the worst option but one that many let happen if they don’t know about the benefits of a “Short sale”….you can buy quicker after doing a short sale and it doesn’t effect your credit quite as bad.Also a major consideration is that the bank can come after you for up to 10 years if you let it go back and they foreclose and you didn’t do a short sale and have your Realtor or Attorney negotiate that out!
Contact your tax attorney for any legal advice but the short sale is the way to go for many people that can’t make any more payments at all and have no hope of getting another job etc…
Regards
Richard
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