Ah Government Programs…

Ah Government Programs…

I think most of us can agree that the government’s intentions are always good, and when they take the time to become experts in the problem, they usually end up helping. I think most of us would also agree that they are not experts in a situation, they more often than not “muddy the waters” of that situation.

Approximately 1.24 million homeowners facing financial hardship enrolled in government aid programs to keep or sell their homes. An estimated 340,000 have received permanent assistance and are meeting the terms of their modified loan. That’s less than 3%.

Now, I’m sure that the current administration had the best of intentions; they saw a crisis and felt the need to intervene. That’s all well and good, but many people see it as an imposition, an intrusion into an industry by a group of people who don’t fully grasp the nature of that industry. Think of it this way – it’s sort of like a doctor observing a growing epidemic and deciding something needs to be done. So he takes it upon himself to instruct scientists and pharmaceutical companies how to create a pill to cure the epidemic. The scientists and pharmaceutical companies would understandably be frustrated with the doctor because he would be pushing his ideas about something he really doesn’t understand.

Now imagine if the doctor could pass a law forcing the manufacture of his pill. The results could be unproductive, if not outright disastrous.

For those of us who work with borrowers in need of assistance, these “help for homeowners” programs are frustrating and an obstacle to hurdle. Frankly, it’s almost a joke due to their appalling ineffectiveness. Again, these programs have worked for less than 3% of homeowners in default.

If you’ve tried to take advantage of one of these programs with your lender, and you are finding yourself in the 97% who can’t get results, maybe a Michigan short sale is the right option for you. Give Emily a call today to find out.


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