The origin of the “ugly house” can range from a death in the family, a divorce and so much more but often times it’s based on foreclosure. The moment when that house you bought, hoping it would become a home, turns into a massive burden that is putting your financial livelihood into danger is often too much of a reality check. When a house becomes an ugly house that you want nothing to do with anymore, it’s hard to know what direction to turn. Do you let the house foreclosed? How do you proceed with a house that suddenly seems like a lemon and whose fault is it that it got to this point?
News Worthy Changes in Policy
In January 2017, the United States government shutdown a program that was meant to prevent foreclosures and keep potentially struggling borrowers safe. Now, the entire industry lives in fear of the approaching “Trump-era” free for all. We’re in a forced experiment, all waiting to see how financial services will start responding to people in bad financial health without any restrictions on how they can act. The previous protections program was known as HAMP, or the Home Affordable Modification Program. When the program was birthed, it faced much criticism as it was not executed with as many finesses as the wounded housing market hoped for. The program included rather ineffective measures like the fact that participation was optional for banks and the ones that opted in were hardly enthusiastic about their contribution to support the program. The verdict was the program hardly held banks accountable for the damage they’d done to cause the Great Recession and the housing bubble and didn’t actively prevent it from happening again. You could make the argument that this may have led to the predicament we’re in now with housing market experts expecting a housing crisis sometime in mid-2019, especially in Northern Colorado and anywhere else that’s seen a marijuana rush. If the program was at one time ineffective, it was at least better than being totally non-existent.
Can We Rely on the Private Sector?
According to many banks, they’re prepared to implement foreclosure prevention programs that won’t spur on another recession and economic issues. Drawing from knowledge and experience throughout the Obama administration’s efforts, there might be hope that there is protection for the average mortgage loan. The hope is that loan modification programs will finally become functional and save many people the headache of foreclosure on both sides of the mortgage. The private sector says that the industry-wide approach is in their interest as they’ve no intention for the markets to revert back to the way they were during the bubble and recession. However, most housing experts and economists alike find no faith in any of the banking industries statements. It would be peachy to conclude that they’d learned from their mistakes of making terrible mortgages tied together and calling them the top-tier loans that millions of Americans bought into, but that would be too easy. Since HAMP was put into place, all of its shortcomings were direct results of how the financial industry responded to policy. As we’re all painfully aware of, the entire industry has been frosted with errors and consists of a cake made of eggs confusion and outright abuse of the laws put in place to protect citizens.
The HAMP Program
When it was put into place, the policy allowed for the vast amount of homeowners about to foreclose in 2009 to adjust the terms of the mortgages so they didn’t have to go into foreclosure. However, the banks merely didn’t follow the rules of the program and would regularly reject qualified homeowners. They’d process the applications at a snail’s pace and toss people out even when they made the changed payments on time.
Don’t Fall Prey To The Banks. Sell Your House to an All-Cash Home Buyer
Rather than go into foreclosure because the poor restrictions on bankers and their disregard for the general well-being of the economy, contact us. Colorado All Cash provides a better way to pursue selling your house.