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The Government Bailout-Why Don't I Get Any Relief?

By
Real Estate Agent with Integrity Real Estate Group

It is a question that is being asked around more than one dinner table or gathering of friends these days.  When it comes to providing assistance to homeowners who over extended themselves a few years ago it appears that there may be some relief.  But what about the homeowners who pay their mortgage on time but have seen the value of their properties plummet due to those who have decided to walk away?

Strangely enough it is a question I've been asked more than once in the last week.  In some ways the bailout seems to be in reverse to what it should be.  The homeowners who shouldn't have gotten a loan in the first place are going to be given the opportunity to freeze their interest rates or have their mortgage reduced to the current market value but what about the other homeowners who are make their payments?  They have also been hit by the economic downturn and the bailout appears to leave them holding the bag. 

One of my clients called and asked whether I thought they should stop making their payments so they could qualify for some relief.  My answer was NO but I understood their frustration as do millions of other homeowners in the same situation.  It made me wonder if anyone else saw this bailout in reverse as well. 

Does freezing the interest rate of homeowners falling behind on their payments mean that they can afford their home or does it just stall the foreclosure process for another 6 months? 

Is it right to punish those who made a financial commitment and are keeping it? 

Should mortgage relief be extend to everyone who bought a home in the last 5 years in declining market areas?


I'd be curious to find out if anyone else is hearing some of the same questions from their clients.  Does anyone else think the plan will keep homeowners out of foreclosure by freezing their rate or is a just a delaying tactic that will fail should a full recession be right around the corner?

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If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and Integrity Real Estate Group a call at 703-346-2213.

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Comments (4)

Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Thre was a great post about this. Basically saying give Americans the money we gave AIG and we will pay off our mortgages and spend out way out oif this. The bailout bailed out credit not us .

Oct 08, 2008 12:41 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

I think a lot of folks are asking that, the people who were not qualified, lied on applications, are getting relief and those homeowners whose property values have declined, pay on a mortgage amount not accurate are getting burned. I don't get it.

Oct 08, 2008 01:00 AM
Evelyn Panning
Property Connections Realty Inc. - Alturas, CA

It is such a big jumbled mess that to do nothing makes no sense.  At least getting some action out there we can start to chip away at the problems and fix them.  There is no simple fix to this problem -- there will be many layers and multiple approaches by the time this is said and done. ~ Evelyn

Oct 08, 2008 01:06 AM
Pat Fenn
Marketing Specialist for CJ Realty Group/Cindy Jones Broker - Springfield, VA

I guess you weren't standing in the right line to get your share of the bailout :-)

Oct 13, 2010 01:58 PM