According to housing analysts, many troubled homeowners will not qualify for Obama’s plan. Among these are homebuyers whose homes have been foreclosed and have been tagged by lenders as cheap houses for sale.
Rep. Barney Frank is confident that TARP money will now go towards the foreclosure adjustment schemes as Congress has been advising. This was after the Treasury Department’s own measures garnered failing marks at a Congressional hearing last Monday.
In support of President Obama’s affordable-home initiatives, the state of New York and several legal nonprofits in the state have been offering assistance to troubled borrowers to prevent their houses from following the fate of thousands of foreclosed homes in the state.
Obama has warned the opposition he is going to fight for his $3.6 trillion spending budget because he needs it to achieve changes the Americans have voted for in 2008, including stopping foreclosures.
The various prongs of President Obama’s foreclosure plan were finally discussed in Arizona, with most of the funds helping at-risk borrowers work out loan modifications.
Homeowner advocates are calling on critics of President Obama’s foreclosure program to support the plan if they have no better alternatives. Indirectly, former owners of tax foreclosures would be helped when the economy gets better as Obama implement his programs.
Outgoing President George Bush may request Congress to release the second half of the $700 billion TARP fund which was approved in October 2008 to help solve the foreclosure crisis.
California Assemblyman Ted Lieu and Columbia professor Christopher Mayer have called for an expansion of the foreclosure program to include underwater borrowers. Homeowners facing tax foreclosures are not included.
Current foreclosure prevention programs are complex yet offer no viable solution to the housing crisis and may even aggravate the problem. The solution could lie in a very simple law change.
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