02-09-09

The past year has been very hard for American homeowners who had to suffer from declining property values and predatory, sub-prime, and hybrid mortgages that due to values forced many Americans to keep these toxic mortgages instead of refinancing in a fixed rate loan as many have planned. Today the plight of the average American is now getting worse and new factors such as raising unemployment have lead to further foreclosures and more American homeowners are at risk then ever. It is with these considerations that the Obama administration is planning on revamping mortgage help programs to actually enable them to help the average homeowner that has seen declining property values and declining credit scores.

Besides rewriting the guidelines for Hope for Homeowners the government is at work trying to get rules passed that would force banks to modify loans of they received any federal money at all. Considering that the banks that where helped stay solvent with the help of tax payer money also happen the be the largest banks in the country the potential exists for millions of homeowners to take advantage of the force modification idea. Geithner said: "We are not doing what they wrote ... Institutions that get assistance will have to participate in loan modifications and meet other standards that we set."

Also in addition to new H4H guidelines and forcing banks to modify loans if they where help by any tax payer money the administration is also considering calling bankruptcy cram-downs. This would give bankruptcy judges the right to modify loans on terms they see fit for the homeowners. This would also allow for many more American homeowners to have another options to get their loans modified should all else fail.

We will post the new reworked H4H guidelines and information on these ideas presented by the Obama administration as we hear them.

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