Will The Obama Plan Help You Save Your Home From Foreclosure?

The government and the President have a new plan to help homeowners who need foreclosure help. We refer to it as the "Obama Plan". Many families are wishing for the best, but if experience has shown us anything, we know it's always best to have a back up plan.

No one will soon forget last years $320 Billion "Hope For Homeowners" program. This was the presidents attempt to provide help then, which certainly has been a huge disaster. The plan was supposed to provide funds to help homeowners refinance and the support was supposed to help lenders provide new loans. The program was touted as the savior for borrowers who needed to stop foreclosure.

The end , according to Fox news, was a single saved home. That's right...one single home. Don't get me wrong, I am, sure that one person is very grateful, but $320 Billion to save one home? Is this what our tax dollars are used for!

My simple explanation for this is that the Washington bureaucrats know absolutely nothing about saving homes from foreclosure. In fact, I would be surprised if anyone who played a part in that bill ever saved a single home from foreclosure, prior to that one home.

Now, the latest "Obama Plan" screw up:

Obviously, after this history with the presidents "bailout plans" we didn't have high expectations for this one either. And we're not the only ones with low expectations; according to the Wall Street Journal headline article of April 15th 2009, GMAC mortgage now estimates that only ten percent of homeowners in trouble will be helped by the Obama plan. Did we just get scammed by the government out of another $320 billion dollars! What happened to the 4 million families that were supposed to be helped, as claimed by the politiciant? The Wall Street Journal is a pretty respectable newspaper and GMAC is a very large lender, so I tend to take what they say pretty seriously, But it doesn't end there.

MSNBC talkshows last week decided to do their own undercover work and find out how helpful this new government plan would actually be. One of their hosts actually tried to find help under the new bailout Plan.

These where his unfortunate and scary results:

1. In the majority of instances, he could not reach a lender to provide any help at all, and

2. Where he did actually reach someone, no one could explain if he would qualify for the Obama plan, or even provide much further assistance about finding out how to qualify.

3. Other good will companies were not any better.

It seems, as usual, no one really understands what's going on and no one wants to make any changes to make it easier for Americans facing foreclosure.

When it comes right down to it, an experienced (for profit) company, operating legally, will have a much better chance of helping you with a workout plan when you are facing foreclosure. Lenders and not-for-profit companies simply don't have the funds, experience, or the employees to help the number of people facing foreclosure.

Another big part of the picture is incentive. What incentive does a not-for-profit have for helping save your home? They get paid no matter what and they don't earn much, so they can't afford to hire someone experienced enough to get the best workout plan for you. A for-profit company only gets paid on a successful workout plan, so they have a greater incentive to get you an affordable loan mod and to do it quickly.

As for the Obama plan; we're happy for the 10% who qualify, but most of America better start making plans to find foreclosure help yourself, or find a professional who can do it for you.

Ultimately, it's not possible to think that one government plan can save every house with a late mortgage. Foreclosures will never come with a one size fits all "government" solution. Each family needs to be handled individually and they almost never fit into an exact mold.

As always, we recommend choosing three possible solutions to stop foreclosure. Never rely on one option and never, never, never, trust the government to bail you out, just feel happy and very lucky if you are part of that 10%!

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