St Louis Home Mortgage Owners Upset At Federal Bailout Penalties | Mortgage

St Louis Home Mortgage Owners Upset At Federal Bailout Penalties

by FloydJ.Tapia

The Treasury Department just released disturbing reports that about 90,000 "distressed borrowers" will be losing their federal mortgage aid under the government's foreclosure prevention plans possible making this another administration failure.

But the news may prove to be much more damaging. This announcement includes the thousands of homeowners who have already modified their loans to lower payments and have paid them on time.

While some of these consumers are losing their benefits due to a failure to prove that they were qualified for this help in the first place, many other participants are losing their current loan modifications due to earning too much or too little since they started the process.

Taking a closer look at this program portrays a self-inflicted doom. Many are losing their qualification due to saving or putting more money into their retirement. Another words, these savings would actually put them over the limit that the government permits.

There are many who are loudly calling for the government to stay out of matters that constitutionally they have no right to enter. But to disqualify those who first qualified for funding doesn't seem fair as well.

The problem lies not in the fact that these distressed homeowners were rightly approved for foreclosure prevention benefits after submitting all necessary paperwork, but the grim reality that they no longer have any rights to this emergency funding due to government loopholes.

It is shameful to see homeowners who didn't commit any fraud should have to lose their homes due to situations beyond their control. And yet, the government keeps billions flowing to the very companies that have defrauded the American people and obviously do not deserve such bailouts.

What's interesting is that due to this bailout fiasco, there are private companies springing up that offer similar foreclosure prevention services but at a cost.

For example, Wells-Fargo has initiated a number of other mortgage-relief efforts that it handles on its own rather than use bureaucratic federal regulations and mandates. And as expected, many of the borrowers are currently attempting to exit these difficult federal programs and enter these private ones.

The main reason for the financial exodus is once you're approved with companies such as Wells-Fargo, you may actually have a good shot at keeping your home and knowing what your payment will be.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

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