Mortgage Aid Relief Program Garners More Criticism
Many people, even the loan officers and counselors that are assigned to helping burdened home owners out with federal aid, are increasingly criticizing the so called mortgage relief aid package that has been positioned by the Obama administration. It has been positioned in order that home owners in a position where they are going to lose their home to foreclosure, get some type of relief.
That relief (for the lucky few who have actually gotten it thus far), is in the form of reduced interest rates for a set amount of time, a reduced mortgage principle balances, or a reduction in payments. The loan modifications can sometimes be huge and help the homeowner out immensely, averting yet another foreclosure, however, most of the program’s money has not been spent yet.
The reason for that is that the process is too lengthy and cumbersome. Many times, homeowners drop out of the application process out of frustration, or due to the simple fact that they keep getting the runaround. Many counselors are frustrated too, saying that the red tape, even after the home owner has essentially jumped through hoops to get the necessary information, is ridiculously time consuming.
The result is that the mortgage relief program has pretty much been ineffectual as far as actually helping homeowners in crisis of losing their home. Homeowners that feel they are qualified, end up not being qualified after they’ve already gone through a lengthy process and produced volumes of paperwork, only to be turned down. How is a program that is this lengthy and cumbersome ever going to be effective?
My jaw hit the floor when I read that part of the requirements to be eligible is that you must have made three consecutive payments in a row. If people are in dire financial straits in the first place, how are they supposed to fulfill this ridiculous and seemingly counterproductive requirement? Call me crazy, but it seems like this program is designed to really stall the giving out of money, and who is that going to help? No one!
