What Obama Mortgage Plan 2010 Needs To Target?
President Obama inherited these issues when they assumed his duties, and his desire to provide an appropriate and effective solution to the mortgage related issues, and to improve on the American economy resulted in to a brand spanking new mortgage plan - the Homeowner Affordability and Stability Plan or the HASP plan, and the Obama's Loan Modification Plan. These designs initially looked lovely on paper, and Americans had plenty of hope and plenty of expectations from the reform programs. However, as on today, the ground reality is different, and findings as well as economic reports submitted by several credit agencies and financial research institutes indicate that the conditions are not that lovely since fewer individuals and debtors have actually benefited from the designs. The editorial discusses some of the findings submitted by reliable financial agencies.
Obama's plan does not encourage medical health insurance benefits
One aspect becomes clear while analyzing President Obama's loan modification programs and other healthcare related designs - the health care program does not include any specific control or offers any significant benefits to decrease the health care costs, or even make health care affordable. No market mechanism exists which can encourage the health care insurance providers to offer competitive prices, or set up competition which can reduce the medical bills and provide quality facilities to patients ailing from illness, undergoing extended medical treatment, or who need medical services for longer durations. Lack of initiatives force the medical insurance providers to keep the premium amounts high, thereby making it difficult for citizens not qualifying for federal and state governments' health programs to afford the medical insurance. President Obama's initiative fails as far as medical insurance benefits are concerned.
Obama mortgage plan to help New york and 4 other states
President Obama's new steps for stopping home foreclosures through the Obama mortgage modification program and decreasing the bankruptcy filings in Nevada, which actually ranks first in foreclosures since last 37 consecutive months, fails to reduce the every month mortgage payments as intended, and people still find it impossible in redeeming their mortgage loans, even today. As per the owner, about $1.5 billion were used to bailout the banks and several credit lending institutions in other states such as Illinois, New york, Florida, and Texas. In addition, a positive percentage of the bailout fund was to be utilized for providing financial assistance to homeowners who have lost their jobs, and to individuals who do not earn to make their every month mortgage payments. Obama's plan fails to effectively address some of the essential mortgage related issues in some of the states.
More homeowners being rejected under Obama's loan plan
Banks and credit lending institutes providing mortgage loans to homeowners try to make it simple for the house owners to redeem their borrowed credit, however in case of consistent defaults of every month payments; these institutes take recovery steps to get their capital back. In such circumstances, they often initiate loss mitigation to prevent the homeowner from filing for bankruptcy. One of the ways to modify mortgages and support the mitigation method is to refinance the existing mortgage, and avail more favorable loan terms and reduced every month payments so it becomes simple for the debtor in supporting the every month mortgage repayments. Obama's HASP plan has been specifically designed for this to happen. However, it is seen that plenty of debtors applying for the benefits under the plan fail to qualify for the program. One of the main reasons why this happens is because the qualifying criterion is hard, and private moneylenders do not benefit significantly while providing the facility.
The government is not taking the necessary initiative in making the qualifying rules flexible and making mortgage redemption simple. Obama mortgage plan 2010 is expected to improve on these drawbacks, and make HASP more effective.
By: Rashid
President Obama inherited these issues when they assumed his duties, and his desire to provide an appropriate and effective solution to the mortgage related issues, and to improve on the American economy resulted in to a brand spanking new mortgage plan - the Homeowner Affordability and Stability Plan or the HASP plan, and the Obama's Loan Modification Plan. These designs initially looked lovely on paper, and Americans had plenty of hope and plenty of expectations from the reform programs. However, as on today, the ground reality is different, and findings as well as economic reports submitted by several credit agencies and financial research institutes indicate that the conditions are not that lovely since fewer individuals and debtors have actually benefited from the designs. The editorial discusses some of the findings submitted by reliable financial agencies.
Obama's plan does not encourage medical health insurance benefits
One aspect becomes clear while analyzing President Obama's loan modification programs and other healthcare related designs - the health care program does not include any specific control or offers any significant benefits to decrease the health care costs, or even make health care affordable. No market mechanism exists which can encourage the health care insurance providers to offer competitive prices, or set up competition which can reduce the medical bills and provide quality facilities to patients ailing from illness, undergoing extended medical treatment, or who need medical services for longer durations. Lack of initiatives force the medical insurance providers to keep the premium amounts high, thereby making it difficult for citizens not qualifying for federal and state governments' health programs to afford the medical insurance. President Obama's initiative fails as far as medical insurance benefits are concerned.
Obama mortgage plan to help New york and 4 other states
President Obama's new steps for stopping home foreclosures through the Obama mortgage modification program and decreasing the bankruptcy filings in Nevada, which actually ranks first in foreclosures since last 37 consecutive months, fails to reduce the every month mortgage payments as intended, and people still find it impossible in redeeming their mortgage loans, even today. As per the owner, about $1.5 billion were used to bailout the banks and several credit lending institutions in other states such as Illinois, New york, Florida, and Texas. In addition, a positive percentage of the bailout fund was to be utilized for providing financial assistance to homeowners who have lost their jobs, and to individuals who do not earn to make their every month mortgage payments. Obama's plan fails to effectively address some of the essential mortgage related issues in some of the states.
More homeowners being rejected under Obama's loan plan
Banks and credit lending institutes providing mortgage loans to homeowners try to make it simple for the house owners to redeem their borrowed credit, however in case of consistent defaults of every month payments; these institutes take recovery steps to get their capital back. In such circumstances, they often initiate loss mitigation to prevent the homeowner from filing for bankruptcy. One of the ways to modify mortgages and support the mitigation method is to refinance the existing mortgage, and avail more favorable loan terms and reduced every month payments so it becomes simple for the debtor in supporting the every month mortgage repayments. Obama's HASP plan has been specifically designed for this to happen. However, it is seen that plenty of debtors applying for the benefits under the plan fail to qualify for the program. One of the main reasons why this happens is because the qualifying criterion is hard, and private moneylenders do not benefit significantly while providing the facility.
The government is not taking the necessary initiative in making the qualifying rules flexible and making mortgage redemption simple. Obama mortgage plan 2010 is expected to improve on these drawbacks, and make HASP more effective.
By: Rashid
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