More Foreclosure Bad News for Gainesville Fl. Sellers.

     Seems like almost every day we see a new program designed to assist folks facing foreclosure. So many foreclosures are about to roll through the system that the Obama administration plans to expand a program aimed at helping people remain in their homes. The goal of the announcement, expected today, is to increase the rate at which troubled home loans are converted into new loans with lower monthly payments, Treasury spokeswoman Meg Reilly said over the weekend. That could include new resources for borrowers, Reilly said, without offering details. Industry officials said the new effort would include increased pressure on mortgage companies to accelerate loan modifications by highlighting firms that are lagging in that area. The Treasury is also expected to announce that it will wait until the loan modifications are permanent before paying cash incentives to mortgage companies that lower loan payments.

Under a $75 billion Treasury program, companies that agree to lower payments for troubled borrowers collect $1,000 initially from the government for each loan, followed by $1,000 annually for up to three years. Michael Barr, the Treasury Department’s assistant secretary for financial institutions, says that the Obama administration will try to shame lenders by publicly naming institutions that fail to move quickly enough to lower mortgage payments permanently. “They’re not getting a penny from the federal government until they move forward,” Barr told the Times. It’s not clear how the government is going to solve anything at all by trying to drive lenders into the ground, or how expanding a failing program is going to produce anything more than more failure. Why not stick to programs that work?
If we had faced the facts upfront three years ago, dealt with the foreclosure issues we would not be on the backside of this housing mess.  Visit my website, http://www.GainesvilleHomesForSale.com for help and assistance with the sale of your home.