Rachel – Day 50

26 Mar

The News: Homeowners Get Some Relief (Again). Today the Obama administration announced another effort to help owners who are struggling with their mortgage payments. The government is offering new refinanced, government-backed loans with lower payments for homeowners. The effort will also offer relief for homeowners who are unemployed offering lower payments for a temporary period. The initiative is primarily to help responsible homeowners who have been affected by the economy, not those who have defaulted on vacation homes and million dollar homes they bought without the money to pay for in the first place. The initiative is not for everyone.

(http://www.nytimes.com/2010/03/27/business/27modify.html?hp)

My Comments: Overall I think this is probably a good idea because there are many many responsible homeowners out there that just need a break in order to get back on track. Circumstances out of their control have brought them into default and it would be a shame for them to lose their homes. However, I know there are many people out there who have financed homes that are out of their pay range and have gone into default. In those cases, I don’t have as much sympathy because their default is largely related to their unwise financial choice, not circumstances outside of their control.

I’m hopeful this initiative could save a lot of family’s homes and it seems to be a good plan to help people recover.

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