Part of the new administration’s rescue plan for the ailing US economy is to help homeowners who have mortgage problems. Aside from asking banks to adjust mortgages and release moratorium, the Obama administration will provide assistance to mortgage borrowers even before they miss payment.
Factors such as income and the value of the property will be considered in evaluating the mortgage loan. This has caused people, from normal citizens to high officials, to express different reactions regarding this plan.
From the Home Ownership Center of Greater Cincinnati, the reaction was one of support and approval. As its president Rick Williams said, this move by the Obama administration is fantastic and forward-thinking. According to him, this will prevent people from getting neck-deep in home mortgages and encourages on-time payment.
This is amid the current home mortgage crisis that the country is in. Williams said that there have been too many foreclosures in the past year because people fail to pay their home mortgages. Homeowners get brokenhearted watching themselves walk out of their houses. States who are being hit hardly by the home mortgage crisis are California, Nevada, Florida and Arizona.
Aside from individuals losing their properties, failure to pay home mortgage have other effects such as lower property values, decline of the quality of houses and other similar properties and increase in crime threats.
Homeowners in these particular states are very welcome to the administration’s plan. One of them is Craig McHugh, a sales manager from Chandler, Arizona who recently got unemployed and facing the threat of foreclosure. According to him, although he is still able to pay his home mortgage on time, it is important for Americans to support the government in such causes.
Most negative reactions are coming from analysts saying that people are most likely to take advantage of the program and abuse it by not declaring their true situation and conditions when they are evaluated for home mortgage. According to David John of the Heritage Foundation, this solution is sending the wrong message to people, as it says that the government will solve their problems even if it may be their fault.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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