Every bailout the government has given to the banking system has been designed to stabilize the housing and stock markets, keep access to credit open, and keep people in their homes. But despite these stated goals, all that has happened is the banks are hoarding the free money, jobs are still being lost, and homeowners are going into foreclosure in record numbers. Banks and the government worked together to enrich themselves through the real estate boom and turn communities into dumping grounds for easy loans. Now that the bubble has burst, banks and the government have been working together to ensure that only the people in those pump-and-dump communities feel the effects of the meltdown.
Unemployment- Another popular topic in today's news is that of unemployment. With unemployment rates rising, many individuals seem to be in a state of panic. In order to help ease the pain, the bill is proposing that the first $2,400 in benefits be tax free. Traditionally, you are taxed at your regular income tax rate on all unemployment benefits. So, while it may not seem like much, this benefit will result in some savings for those who are currently out of work. In addition, funds are being earmarked to assist with training and employment services through a variety of different grants geared towards expanding individuals' opportunities. Education- Due to the recent unemployment increase, more professionals are going back to school. In order to assist these individuals, the stimulus bill has earmarked $16.14b to this cause. These funds are planned to be used to increase the limit on Pell Grants, Student Loans, Financial Aid, and College Work Study candidates.
There are also funds going to K-12 education. The programs are structured to prevent cuts to critical education programs and services including special education programs, data systems to analyze student data, education for homeless children, and programs to increase teacher quality.
All of this inflation where the government prints money and throws it at banks will also result in higher prices down the road. The banks are hoarding the money now in order to cover future losses they know are coming from other bad investments, but eventually they will begin making poor loans again, inflating another bubble before another collapse. One argument that has been made is that it is far too difficult to throw small amounts of money at hundreds of thousands of homeowners to stabilize the system. So the government throws large amounts of money at a few small institutions, which is supposed to help everyone by maintaining faith and support of the financial system.
You must be in a state of financial hardship. This means that your mortgage payment is either in arrears or will soon be due to events beyond your control. This could include: job loss, death of a spouse, medical bills, or an adjustable rate mortgage that jumped way above what you expected. You must be able to document this situation and also present how your income could reliably sustain the new, modified house payment.
The stimulus package loan modifications are only available for a limited window of time, and if you are facing foreclosure, you definitely need to act quickly. Obama's Home Stimulus Package will only allow for one application, so be sure you are prepared before you approach your lender. Having your budgetary work done and documentation ready in advance gives you a better chance of approval.
Unemployment- Another popular topic in today's news is that of unemployment. With unemployment rates rising, many individuals seem to be in a state of panic. In order to help ease the pain, the bill is proposing that the first $2,400 in benefits be tax free. Traditionally, you are taxed at your regular income tax rate on all unemployment benefits. So, while it may not seem like much, this benefit will result in some savings for those who are currently out of work. In addition, funds are being earmarked to assist with training and employment services through a variety of different grants geared towards expanding individuals' opportunities. Education- Due to the recent unemployment increase, more professionals are going back to school. In order to assist these individuals, the stimulus bill has earmarked $16.14b to this cause. These funds are planned to be used to increase the limit on Pell Grants, Student Loans, Financial Aid, and College Work Study candidates.
There are also funds going to K-12 education. The programs are structured to prevent cuts to critical education programs and services including special education programs, data systems to analyze student data, education for homeless children, and programs to increase teacher quality.
All of this inflation where the government prints money and throws it at banks will also result in higher prices down the road. The banks are hoarding the money now in order to cover future losses they know are coming from other bad investments, but eventually they will begin making poor loans again, inflating another bubble before another collapse. One argument that has been made is that it is far too difficult to throw small amounts of money at hundreds of thousands of homeowners to stabilize the system. So the government throws large amounts of money at a few small institutions, which is supposed to help everyone by maintaining faith and support of the financial system.
You must be in a state of financial hardship. This means that your mortgage payment is either in arrears or will soon be due to events beyond your control. This could include: job loss, death of a spouse, medical bills, or an adjustable rate mortgage that jumped way above what you expected. You must be able to document this situation and also present how your income could reliably sustain the new, modified house payment.
The stimulus package loan modifications are only available for a limited window of time, and if you are facing foreclosure, you definitely need to act quickly. Obama's Home Stimulus Package will only allow for one application, so be sure you are prepared before you approach your lender. Having your budgetary work done and documentation ready in advance gives you a better chance of approval.