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Obama to Give Aid to Homeowners with Home Mortgage Woes

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By : John Cutts    99 or more times read
There has been much buzz about the new administrationís plans on giving aid to the USAís ailing economy, a large part of which involving home mortgage refinancing and other foreclosure issues.

The housing industry is one of the financial areas that experienced, and is up to know experiencing a hard hit from the recent economic recession.

With problems being pointed at the previous Bush administrationís failure to allocate funds to address the issue, foreclosures and other issues on home mortgages continue to be a big problem of individual homeowners, communities, and of the country as a whole.

With this, the Obama administration has promised to provide funds to secure distressed properties because of homeownersí failure to pay for their home mortgage loans. Actions include insuring properties, authorizing the government to purchase some distressed assets, and spend $100 billion to modify home mortgage loans that are troubled and are not being paid for anymore.

On Monday., US Treasury Secretary Timothy Geithner will present in a speech the details on the administrationís plans on allocating the funds which is part of the $700 billion financial bailout program of the government. This is part of the Troubled Asset Relief Program or TARP, which was created last October to provide a solution to the worsening problems of foreclosures and unpaid home mortgages.

At present, part of the TARP fund was already released to Citigroup and Bank of America to provide insurance on troubled assets. The government has already given $301 billion to Citigroup and $118 billion to Bank of America. $50 to $100 billion is set to be used to buy distressed home mortgages from other banks and lenders.

This is to help homeowners prevent foreclosures. The remaining TARP money will be used for a Federal Reserve lending program that will serve as a medium to mop up toxic assets. The US Treasury has already promised to give $20 billion to this program which is called the Term Asset-Backed Loan Facility or TALF.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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