With much adieu the government announced on Tuesday February 10th that over $75 billion would be spent trying to help as many as 9 million American homeowners avoid foreclosure. This will be accomplished through government sponsored loan modifications and refinance options. One glaring problem with this plan for those on the West Coast is that it restricts loan modification and refinance help to those who owe no more than 105% of their home's current market value. In states like California, Arizona, and especially Nevada where home prices have plummeted 50% or more in the last two years, this restriction renders most of the home owners in these states who would need to take advantage of such a plan ineligible.
The government also imposes other criteria for the bailouts including the need to prove a significant decrease in income as well as financial hardship. It then juxtaposes this with a requirement stating that the new mortgage payment amount for any prospective homeowner cannot exceed 31% of their gross monthly income. Applicants must also be owner occupants and have mortgages that do not exceed a balance of $729,750.
Critics of the plan point out that there is no provision for second mortgages to be refinanced or modified and also argue that with it's extensive list of requirements the plan will not help the very homeowners who need it most. This includes most Las Vegas residents. In a recent article in the Las Vegas Review Journal, Mark Baker, a loan officer with Meridias Capital was quoted as saying, "Up to 105% of the value? I think this will help a lot of people in the Las Vegas area. In fact, it may be more than three or four people, or even up to 10. Another example of how lots of talk, lots of money spent and so few people can use a new government program. Sorry for my sarcasm."
As a local foreclosure expert, I have witnessed more and more homeowners and investors in the Las Vegas area succumb to foreclosure because they are unable to find refinancing packages for their properties. It is unfortunate that such a large scale plan from the Federal Government is not structured in such a way that it can benefit those people who could most utilize it. Most homeowners and investors in hard hit areas, like Las Vegas, California, Arizona, and Florida will not be able to take advantage of the relief offered in this new plan.
Finances are an integral part of our lives and are essential for shaping the life in the way we wish to. So, efficient management of finances is crucial for a pleasurable and a secure financial life. Habits play an important role in shaping the financial future of a person. It is important to plan out the expenditures based upon the monthly income. One should try his best not to overshoot the monthly budget, except for some emergencies or urgent financial needs.
However, all the above is easier said than done. The present lifestyle has resulted in increased needs and desires among people belonging to every section of the society. It is usually not possible for a common man to address all those needs with the fixed income. Some time or the other, a person may need to borrow money to fulfil some of the urgent needs.
The problem arises when a person doesn't know where to draw a line when borrowing money from various financial sources. A time comes when the debt situation goes out of control and filing for bankruptcy seems to be the last option.
Do not let such a situation come in your life. If you have multiple debts pending against your name, try to consolidate your debts into a single loan with debt consolidation loans. A debt consolidation loan enables you to amortize your pending debts (especially high-interest ones) comfortably without feeling the debt burden.
However, you should not get overwhelmed by the thought of eliminating your multiple debts. Think twice before pledging your home or other valuable assets before getting a secured debt consolidation loan. A slight miscalculation by the borrower regarding the affordability of the repayments can cost him dear. The item put forth as the collateral may be seized by the lender in case of non-repayment of the loan money. So, you should use this loan option only when your debts have grown into unmanageable proportions and comprises of high-interest debts, such as credit card payments, car finance repayments, unsecured personal loans and so on.
If you want to get rid of multiple small debts, then unsecured debt consolidation loans are far more suitable than the secured counterpart. This financial option will help you to regain control over your finances without risking anything.
Both Glenn Plantone & Jake Nathan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Glenn Plantone has sinced written about articles on various topics from Vegetarian Diet, Depression Cure and Foreclosure Help. Glenn Plantone is a foreclosure and short sale expert, full time real estate investor and licensed real estate agent in Las Vegas, NV. He has appeared on several radio and television shows and in print discussing real estate trends and opportunities. He. Glenn Plantone's top article generates over 135000 views. to your Favourites.
Jake Nathan has sinced written about articles on various topics from Diamonds, A Secured Loan and Car Loans. The author is a business writer specializing in finance and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Debt-Consolidation-For-The-Stressed as a Finance speciali. Jake Nathan's top article generates over 301000 views. to your Favourites.