Foreclosures Will Increase No Matter Who Is President
July 11th, 2008
Foreclosures on houses will go on increasing no matter who is the President of America. Despite the brouhaha about the presidential elections nothing will or can change the foreclosure scene overnight. The President has no direct power to lessen the mortgage rates. Despite this the presidential candidates Obama and McCain continue to make assuring promises to foreclosure victims.
Obama wants the government to play a bigger role than Mc Cain. Both of them however are keen that the Federal Housing Administration or FHA introduces cheaper set of new mortgages to those who are in distress and cannot refinance. To do this the FHA will be expected to issue government insured loans with affordable low monthly payments.
For the plan to take off it will be required of lenders to accept huge losses by waiving chunks from the principal loans. Without a strong incentive there is no reason why lenders should agree to it.. But by choosing the path of foreclosure they will lose even more because of court and allied expenses. It will take up time and energy. Even after going through the whole show of foreclosure there is no guarantee that the house will be sold at a reasonable price.
Obama wants legislation following the lines laid down by Democrat Senator Dodd. If implemented it will benefit about 400,000 foreclosure victims. However there are certain conditions. The applicants must have a good credit history and also be able to prove that they can carry on with the new rate schedule. Obama argued that if the government could “bail out investment banks on Wall Street” why cannot it lend a helping hand to those who are “struggling on Main Street.”
McCain’s proposals aims to help 200,000 to 4000,000 house owners at risk from foreclosures. Here again proof of credit worthiness will be required for the time when they contracted the original loan. McCain assured that the plan is for “every deserving American family or house owner” to get the chance to exchange a cumbersome mortgage for a manageable one.
The Dodd plan will cost nearly $1 billion and the funds would come from the profits made by Fannie Mae and Freddie Mac during the early years of the housing boon. McCain’s scheme will cost anything from $3 billion to $10 billion and the funds would be provided by clipping federal spending elsewhere and from governmental borrowing.
- Spurt in Sales of Foreclosed Properties
- Foreclosure Climate Changes Spirit of Competition to Cooperation Among Contractors
- Bouncing Cheques Issued by Title Companies Lead to Foreclosures
- Increase in Foreclosures Prompting Class Action Legal Suits
- Avoiding Foreclosures by Walking Away From Loans are not Without Problems
- Foreclosure Assistance Being Taken on Tour by Housing Advocate
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