Treasury Department to Help Homeowners with Short Sales

We are eagerly awaiting the Treasury Department’s newest plan to help lenders push short sales through the system.

Back in May of 2009 the Treasury Department announced plans to take about 10 billion dollars from a 50 billion dollar pool of funds set to help modify loans and utilize it to entice lenders to accept a short sale.

Unfortunately the Treasury Department moves about as quickly as a Bank of America Short Sale so we could all be dead & gone before this goes into effect but rumor has it that it will be sometime in the 4th quarter of 2009.

As much as I am eagerly awaiting this type of lender incentive it brings a few questions to my mind.

1. 10 Billion dollars is nothing compared to the 700 billion dollar “bailout”. Why did the government allow companies such as Bank of America to take TARP money and use it to buy other banking institutions such as Merrill Lynch, pay bonuses to Merrill Lynch Executives, and basically used the money to bail themselves out instead of helping homeowners? Now the government is getting giggly about 10 billion dollars being sent a thousand here, a thousand there to get lenders to accept short sales?? Hmmmm….

2. The Making Home Affordable plan has a success rate of about 12%. THAT’S IT???? This wonderful, amazing, loan modification program that is supposed to save America has helped only 12 out of every 100 people that needs help? Do you think maybe we need a system that works just a little better??? Especially considering the fact that of those remaining 88 people, they are usually sitting around waiting for the lender’s response sometimes up to 9-10 months later??!!! Or I’ve seen even longer!! These are people who would benefit greatly from a short sale yet the government is doing nothing to speed this along when this homeowner could have had their home listed, short sold, approved, and closed WAYYYY before this 9-10 months have elapsed just to hear “NO, your loan modification is not approved. Tough luck.”

3. Who runs this country anyways?? The government or the banking industry?

Related posts:

1. Bank of America & More Mis-Dealings…
2. Bank of America offers Stock options?
3. Will Bank of America Buy Back 47 Billion???
4. Heads I Win, Tails the Government Bails Me Out
5. Fannie Mae keeps getting bailed out…