bharatbhasha.com
Free Articles  >>  Business And Finance >>  Page 1  >> 

St Louis Mortgage Professional Says HAMP Stopping Foreclosures Would Be a Miracle





Key inside officials on Capitol Hill seem to be joining the criticism involving the federal foreclosure prevention program known as HAMP due to its numerous failures including their cynical outlook on where its heading.

With letters being traded between Neil Barofsky, special inspector general for the Troubled Assets Relief Program (TARP), and one key senator, he has recently said in a report that the U.S. Treasury now expects only 1.5 million to 2 million homeowners to get mortgage relief.

But the sobering news is that nearly 4 million consumers actually need this federal assistance. Yet, most experts are despondent at the reality of this number being attained.

The reason for this bleak outlook is that fewer than 200,000 or five percent have actually advanced from the trial program into a permanent modification mode.

But if matters couldn't be worse, the inspector general's report warned that many borrowers are at risk of re-defaulting on their St Louis mortgages even after receiving help under the federal program.

Is this due to irresponsibility on the homeowner's part? Consider this: Many of these consumers still owe significantly more money than their homes are worth. In addition, some have second mortgages or other debts that HAMP didn't provide for.

The detestable statistics that will be briefly mentioned may be those thousands of homeowners who were indeed irresponsible to the point of buying homes they knew they couldn't afford. And what is worse is the multitude of consumers who blatantly lied on their applications when it came to the now infamous stated income loans or what others call "liar loans." These are the very one who helped create this mortgage fiasco alongside the insurance and banking behemoths.

Getting back to the matter at hand, Barofsky then shows his further skepticism basically saying that these loan modifications may not be the best program to continue offering. The Treasury department had other opinions as to the wide spread criticism.

In a long, drawn out response included in the report, Herbert M. Allison, assistant Treasury secretary for financial stability said the program "should be measured by how many eligible homeowners are able to avoid the pain and stigma of foreclosure by reducing their mortgage payments to affordable levels while either remaining in their homes or transitioning with dignity to more suitable housing. The number of permanent modifications is one element, but not the only element of gauging the success."

It is rather interesting how politicians and their ever-so-loyal henchmen try to inadvertently, yet aggressively make excuses at why everyone is looking at things the wrong way except for them.

What Allison, in reality, was saying is that the problem is not in the failing of HAMP, but rather that Barofsky and other critics are not measuring its lack of success the correct way. Oh, really.

Since Allison clearly points out that permanent modifications are really only one way to help struggling homeowners, this somehow suggests that he himself doesn't firmly believe his previous comment.

And we shouldn't fail to mention that these very servicers offer other foreclosure prevention options such as short sales as needed alternatives.

Yet, most people who have been following this program from its inception were spoon fed the amazing idea that permanent loan modifications through HAMP was the best and perhaps the only way the country would see this insurmountable amount of foreclosures go away.

And as many homeowners have found out, if their modification does not include a worthwhile principal reduction, it will in time fail the consumer.
About Author Floyd J. Tapia :

If you are wanting to discuss some of the best St Louis home loan options on a St Louis mortgage or a St Louis refinancing loan, visit our websites at <a href="http://www.stlouisrefinancinggroup.com" target="_blank">http://www.stlouisrefinancinggroup.com</a> or <a href="http://www.libertylendingconsultants.com" target="_blank">http://www.libertylendingconsultants.com</a> or call Steve, Doug or Floyd at 877-334-0210 or 314-334-0210.


Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/306760


Article Added on Thursday, July 14, 2011
LD
Other Articles by Floyd J. Tapia

St Louis Finance Professionals Say Short Sales Being Encouraged by HAFA
It has been very difficult for Americans to keep track of all the federal bailout programs that were originally designed to halt this dying economy. Much to the chagrin of banks, short sales are getting more and more publicity and the financial blessings of being used to avoid foreclosure altogether. A short sale enables the homeowner to leave their home while not getting the devastating hit on their credit report compared to a foreclosure entry. Plus, the short sale can do much for the bank...

St Louis Home Mortgage Consumers Walking From Foreclosed Homes And Renting
There may be some good news ahead for a nation facing a terrible foreclosure epidemic. Homeowners who are currently facing foreclosure could now get the support through a congressional bill that gives them the right to rent. A new five year lease agreement may be in order and finally available for those families receiving a foreclosure notice which would help them to stay in their current home. This alternate housing development would set a new fair market rental value on their home which...

St Louis Mortgage Owners Confronted With Ongoing HAMP Failings
In an anticipated yet disturbing announcement, Amherst Securities Group LP’s Laurie Goodman told Congress that the U.S. loan modification program called HAMP (Home Affordable Modification Program) is “destined to fail” because it doesn’t confront the real problem of negative home equity that is driving foreclosures nationwide. This is definitely bad news for St. Louis mortgage owners who are themselves dealing with a less than stellar real estate market notably in the once fast growing suburbs...

St Louis Finance Terms Will Get Harder For Home Buyers Who Walk Away From Their Mortgage
New legislation coming from Capitol Hill will allow Fannie Mae to take legal action against mortgage owners who did not make their house payments although they were fully capable of making them. The amount of foreclosures that most likely will happen this year will be at least 2.6 million. What is worse is that approximately 11 million owners are severely underwater as far as their homes are worth according to St Louis finance news. The term strategic default has come about as a direct result...

St Louis Home Mortgage 3 Simple Rules to Remember When Loan Shopping
For all those renting or simply wanting to upgrade their home, getting a St. Louis home loan to purchase their dream house is still the quintessential American dream. Our goal is to help potential homeowners to avoid the obvious and not so obvious pitfalls of a mortgage disaster. The Federal Reserve has released recommendations that we would like to echo at this time. These home mortgage loan tips can apply to purchasing a St. Louis new home or refinancing an existing mortgage. 1. The...

St Louis Mortgage Tips For Getting a Loan Modification
The obvious failing of the home loan modification programs has created mixed views on whether homeowners should even waste their time trying to apply for funding that may never materialize. However, most economists will say that all is not lost. Well, for those who share this optimistic opinion about these federal programs, here are some proven ideas that have been relayed by St Louis refinancing experts that may actually help increase your change of being approved and funded. Let's dive...

St Louis Home Loan Analysts Predict the Worse is Yet to Come
Just when the average homeowner thought that things were possibly turning for the better, it appears that we may be heading for a double dip recession. Most St Louis home loan advocates have been wondering why the Federal Housing Administration (FHA) recently gave the green light for property flipping to FHA buyers and sellers? More and more experts are saying that the FHA has seen the chilling, yet proverbial handwriting on the financial wall. Now in order to prevent the absolute worse type...

Distressed St Louis Mortgage Owners May Be Penalized For Saving Money
The St Louis mortgage industry is puzzled at the report coming from the United States Treasury Department stating that approximately 90,000 distressed homeowners may lose their federal mortgage funding that was made available by the foreclosure prevention programs. This report is not just for those who have yet to apply. The loss of monetary benefits includes those who have already completed their loan modification and have paid their lower payments on time every month. While some of these...

St Louis Mortgage Consumers Here Are 5 More Innovative Home Buying and Refinance Tips
Although the St. Louis mortgage and real estate market has drastically changed over the last 18 months, there are ways that consumers can avoid or at least minimize the home buying stress factor. The following five simple yet ingenious tactics will help in making your St. Louis home loan and home buying experience a better one that will yield positive results. 1. Do not make the mistake by waiting to apply for your loan - Reports from Washington issued in early January announced that...

St Louis Refinance Experts Say Home Loan Applicants May Not Receive Future USDA Loans
Once upon a time, their existed a federal mortgage program from the United States Department of Agriculture that would guarantee low down payments, no down payments and low interest rates for rural home buyers. However, with the stringent St Louis home mortgage lending requirements facing would be homeowners today, tens-of-thousands of potential buyers have been ushered into this program with promises of a better life, a better home loan in a financial fairytale land not so far away. Recent...

Click here to see More Articles by Floyd J. Tapia
Publishers / Webmasters
Article ID: 306760
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:


282 Users Online!!
Related Articles:
Latest Articles:
 
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts
Aging


Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of bharatbhasha.com and/or its owners.


Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Bulk Email Solutions India Provided By AwareIndia







Company IDS