Archive for the 'Foreclosure Help' Category

Last Tuesday, a Financial Stability Plan has been outlined by Treasury Secretary Timothy Geithner that aims to distribute as much as $2 trillion of private and public funds to the crippling financial system. The plan will be financed within a complex combination of a balance sheet extension of the Fed, private capital and federal tax dollars. Basically the central bank will produce more money in order to finance business and consumer lending and slow down home foreclosures. The plan has four focal points to strengthen financial markets:

The entire U.S. banking industry and millions of foreclosure-troubled homeowners are awaiting Treasury Secretary Timothy Geithner's bailout plan. They expect that his plan is vastly different from that of Henry Paulson, as Paulson's plan largely failed because he focused only on helping financial institutions.

The U.S. Department of Housing and Urban Development recently allotted $91 million dollars to address the Florida foreclosures. The amount is expected to help the entire state, according to Gov. Charlie Crist.

With the continuous flooding of foreclosures in the housing market, the need for government assistance is undeniable.

A year of extra attention and effort failed the Congress in resolving the foreclosure crisis.

Barack Obama, who is just a few days away from being inaugurated as the 44th and the first African-American U.S. president, is facing his first big test in the Senate. Democratic and Republican senators have been debating whether to give him the second $350 billion of the Troubled Asset Relief Program fund for his own foreclosure prevention program.

The Congress is left with merely less than two weeks to decide on whether the second half of the $700 billion bailout fund would be released or not. Supposedly, the fund is to be used to address the persisting foreclosure crisis in the country.

As President-elect Barack Obama waits for the response of Congress to his request for the release of the remaining $350 billion of the Troubled Asset Relief Program fund approved in 2008, he reaffirmed his election campaign promise of using a big portion of the fund to help homeowners avoid foreclosure and help small business owners save their operations.

Just minutes after President Bush said at a news conference that President-elect Barack Obama just had to "ask" if he needed the remaining $350 Billion bailout funds allocated for foreclosure prevention, Obama did just that. Now Congress has to vote within a 15-day period whether to approve the request.

The year 2008 was full of distressing events for Americans and for most other people in the world. Record numbers of homeowners across the country were forced out into the cold after their homes were put into foreclosure.

Max Rameau, a housing advocate, stated that empty homes are a sign of continuous foreclosure, but a good chance for homeless people.

Many experts believe that the key to solving the deepening economic problem is to stabilize the housing market and finally put an end to increasing foreclosures.

The U.S. Treasury Department has annoyed Sen. Dodd and Rep. Frank by not cooperating in terms of preventing foreclosures.

Chairwoman Sheila Bair of the Federal Deposit Insurance Corporation (FDIC) has previously proposed a program to reduce foreclosure homes but was met with strong opposition from the same administration that appointed her. Bair's plan intends to use $24 billion from the Troubled Asset Recovery Program (TARP), the $700 billion bailout package approved by Congress, to encourage lenders to restructure mortgages of homeowners in trouble of losing their homes from foreclosures.

With the rising number of foreclosures hitting the American economy, a nationwide program is underway in an effort to assist these troubled homeowners. However, the plan has received criticisms from various sectors, questioning the need to support these delinquent homeowners while the majority of American families are keeping current with their mortgages.