Good news for the San Diego home buyers is that newly elected President Barack Obama’s administration is up for a challenging start. The economy is low, the word recession is everywhere and the real estate market is experiencing home mortgage crisis. As stated in a letter by Lawrence Summers (President Obama’s top economic advisor) to top lawyers, the Obama administration is prepared to address US home crisis and is willing to commit $U150 billion. This financial bailout plan should help manage the home mortgage crisis that is putting US economy in great risk.
The Remaining Half of the TARP
TARP, Troubled Asset Relief Program, is a financial bailout plan worth $U700 billion. The first half of the TARP was already spent for past bailouts and the second half will soon be released to the administration. The letter mentioned above reassures the people that the second half tranche would be spent wisely and efficiently. The Obama administration promised to implement smart and aggressive policies to ensure that a number of preventable foreclosures be saved from foreclosures – this can be achieved by reducing monthly mortgage payment of homeowners who are economically stressed but are responsible mortgage payers.
Mortgage Foreclosure Mitigation Programs
Due to home mortgage crisis, the bankruptcy laws are recommended by the National Economic Council’s director-designate to be altered and that existing housing initiatives be strengthened. Banks who are receiving support under this financial bailout plan will implement mandatory mortgage foreclosure mitigation programs to all their clients. US have never experienced a financial crisis like this one since the Great Depression. Amidst global financial turmoil and home mortgage meltdown – the Obama administration is confident that their bailout plan will be the answer to America’s prayers.
Bush Gives Obama Access to $US350 billion
Former President George W. Bush advised Congress to bestow President Barack Obama access to the remaining TARP fund worth $US350 billion to help revitalize the economy. So far, the administration have utilized the money from TARP fund for bailing out ailing banks, automakers, credit card and insurance companies. This time however, the Barack administration promises to allocate $U150 billion solely to deal with US home crisis.
Different Sides, Different Views
Lawmakers from different sides have expressed their anger over the administration’s lack of accountability, transparency and focus given to the Americans during financial bailout. The citizens of US feel left out and disregarded as the administration releases financial bailout to Wall Street firms. As opinion polls have showed, they want to have an opinion on how to use the public funds – as it is the people’s money in the first place. Because of some disagreement on its allocation, some Republicans demand to block the release of TARP fund, the US Senate will vote if indeed they will block the remaining $US350 billion. Also, another angle in play is an oversight in Congress that blames the US treasury Department on its failure to ease the US home mortgage crisis.
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