How To Get Foreclosure Relief: Homeowners Search for Help

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By Gene Byrd Nov 20, 2008

As the bailout bonanza continues at a rapid pace from Washington, DC everyone now seems to want a piece of the pie. The cash grab has homeowners that are struggling wondering, 'why not me?' as they want to know how to get foreclosure relief. It makes sense to many taxpyers and homeowners as money is being given away to companies and industries deemed worthy as "too big to fail."

How To Get Foreclosure Relief: Homeowners Search for Help

But others wonder why anyone at all should get a bailout. Those that are playing by the rules and have saved and always made their own house payments (and continue to make them despite the tough times as well) wonder why their neighbors that didn't save or prepare should get a better deal just because they were careless and made poor decisions.

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Some of the plans being floated seem foolish and may do more harm than good. One new program seems to encourage homeowners to get behind in their payments so they can restructure. Realtor Steven Wright asks, "What is to stop a homeowner from just defaulting on their loan so that they can use the extra money?"

Here's the rules that borrowers must meet: Be at least 3 months behind, Owe 90 percent or more than their home is worth. (Almost all of homeowners) and have not declared bankruptcy.

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If you meet that you can get, "an Interest rate (that) could be reduced so that a borrower would not be paying more that 38% of their gross income on housing, plus an ability to extend the loan from 30 to 40 years to make the payments smaller and "Possibly differ some of the principal amount, interest free." Is this what we should be doing for homeowners facing foreclosure?

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