What About The New Government Loan Programs

Fri, May 8, 2009

Home Mortgage


 

Beginning in 2008, Uncle Sam has introduced a number of home loan refi programs that they hoped would spark the economy and help homeowners.

The loans would be made available through normal lenders, but backed by the government.

There were foreclosure bailout loan programs introduced. There were also initiatives introduced that would streamline the lending process for borrowers, making it simple for them to qualify for the great interest rates that are currently available.

On the surface, these new refinance programs seem great.

The problem however, is that no ever seems to be able to get one of these loans.

What’s The Deal?

It seems that although the government has the best of intentions, that the banks aren’t being all that cooperative. Uncle Sam can announce all the programs in the world, but if no banks participate, then there are no loans.

I know a lot of people who would love to be able to refinance their homes using one of these programs,but can’t. Borrowers who are depending on a special circumstance loan offered by the Fed have no choice but to wait it out.

Until Uncle Sam really pressures Mortgage Lenders to go along, nothing will happen.

In this economy, who is in the mood to wait around.People need help and they need it now.

You have to do what you can to survive while you wait. At the very least, do your best to keep up with your mortgage payments.every day, in the papers we read about all the bail out money the banks have been given.

However, there is no evidence of banks being forced to join.

In the end, I do think that the government loan programs discussed here will come into play. The thing is though, that in the mean time there are people struggling to make it.

Hopefully, the days of this economic crisis are numbered and we can all get on with our lives.

 

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