FHA Secure: Is It Really Secure?
Posted on April 27, 2008
Filed Under Mortgage Updates
And in the news of mortgages and foreclosure is the world of the government. On April 9th, it was announced that there would be a new HUD assistance program offered. For HUD homes, those who need extra assistance in order to prevent foreclosure, would have the ability to re-finance and work with HUD in order to secure their homes. The act is being called FHA Secure, meaning Federal Housing Administration Secure.
The idea is to provide assistance to those who may loose their homes and need extra help in paying the bills and getting caught up. It is providing help to give more mortgages to those who can not afford housing. It is also offering security for those who have some late payments or received mortgage principal from the lender that started their mortgage.
The “plan” is to help those who need extra assistance in mortgages so that they can get out of the situation they are in and so they can keep their homes. This is supposed to give the lenders flexibility of loans through an extra $68 billion.
While this may temporarily fix the problem of mortgages, foreclosures and everyone in America who doesn’t have enough money to live (basically everyone), it doesn’t get to the root of the problem. If you look closely, you will notice that the money is being given to provide - not assistance - but extra mortgages. This allows those who are already in debt to add in more debt on top of this, so that they can “get caught up.” Eventually, the money that can’t be paid back has to be paid back.
The late payments and principal, while it may seem to be a quick fix, only offers re-finance options. It doesn’t necessarily change the situation or the problem that the individuals got into in the first place.
With the power and control that the government and HUD has over homes that are about to foreclose, as well as our entire living situation in America, is also what leaves me pondering - are we ever really going to be safe and secure with the system we are set up with? Or, are we just all bound to loose money and living possibilities through high interest rates and banks that are ready to take it all under a disguise of having a new “security blanket.”
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