Side effects

One of the many side-effects of losing your job is, unfortunately, losing your home. Thankfully (some would say “finally”), the government is moving to stem the foreclosure crisis in a preliminary move aimed at “preventable” foreclosures. The only stipulation, it seems, to recieve this aid, is that you be at least 60 days delinquint in your mortage payments. The government has several options to help you: lowering the amount the you owe, reducing your interest rate, or lengthening the overall length of your loan. This can be a huge help to you, and let you focus on finding a new job–not a new place to live.

Source: MSNBC, http://www.msnbc.msn.com/id/28891956/

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4 Comments

  1. Given the number of job losses reported in the last several days, it seems appropriate for some form of relief for homeowners. I am not one to promote free handouts from the government, but this seems more targeted at those who are in their current situation due to the dramatic economic crisis. The crisis caused by bad business decisions and in many cases by executives who will not feel the belt tightening most Americans will feel. Any steps by the government that allow productive workers who have lost their jobs to weather the storm, which will be lengthy by all accounts, while finding another job, starting a business, or re-training for a career change seems to me to be a good use of tax dollars.

  2. I agree we should help with the homes. But how are these people out of work suppose to get out to find a job without a car. We better pass car relief next. Can’t have a car without insurance so we better pass insurance relief next after that. The problem is it is a slippery slope. We don’t have the money for any more bail outs of any kind, Corporate or personal! This country has saddled its kids with a dept economist say it will take 100 years to pay off. There have been many hard times in the past and I don’t remember bails outs of this kind. People in this country used to plan for hard times. Safety nets like unemployment have already been put in place to help people get on there feet. It use to be when people bought a house in the past they would asked themselves the question, What happens if I loose my job? Can I survive until I get a new home? How will I pay my house payment if I loose my job. When my wife and I bought our first home in 1980 for $53,000 we asked this question and we both lost our jobs for a time and survived until we found another. It is called living within your means. These questions are no longer asked in this “got to have it all now” nation. What happens to the people that have been living within there means? Why should we have to pay for others. There is something called rent. If you lost your house you may have to try it because I don’t want to have to pay for your home!

    Bill

  3. I agree that rampant materialism and instant gratification have run amok in this country, and we have to start finding something other than money to value. However, economics, like nearly every other human endeavor, is nothing if not interconnected. So that means, when you’re neighbors are hurting financially, eventually it’s going to hurt you. So by helping people to keep their homes, there are fewer foreclosures driving down the prices of homes.

    So look at it this way: Your tax dollars are really just helping yourself and others at the same time.

    I also think there are quite a few victims out there–people who were told they could afford what they really couldn’t. Good people in a bad situations. And I really don’t think victims should have to suffer because some people knowingly and irresponsibly bought houses they couldn’t afford.

    Like it or not, we’re all in this together.

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