Ever since the subprime mess started, the White House has been quite firm in its resolve to address the issue but not in the form of a bailout for mortgage lenders. President Bush believes that even though the economic situation is worsening, as a result of the housing and credit crisis, it is still not right to help these lenders and speculators who were responsible for the current problems in the first place.
For the past months, legislators have been working out a new housing bill that will help borrowers switch to mortgages backed by the government. Although the said bill has yet to be approved, the Bush administration is very open about its decision to veto the bill. Furthermore, the president is urging Congress to pass instead a legislation that will involve major reforms of Freddie Mac and Fannie Mae.
In its initial attempt to curb the worsening economic crisis, the Bush administration launched an economic stimulus program that involved tax rebates for most Americans. The said program was designed to assist people in paying their bills and keeping them in their homes and avoiding foreclosure. Democrats are already pushing for another similar program especially with the skyrocketing food and fuel prices.
For homeowners, any foreclosure rescue program will certainly be welcome but the government should also realize that this is just as short term solution. The nation is still waiting for a more pro-active approach to the problem at hand, which will prevent this kind of situation from happening again in the future. To date, there are literally millions of properties entering some stage of foreclosure.
Although tighter lending guidelines have been implemented, there is still the issue of the weakening dollar and lack of employment opportunities. Also, many borrowers fell into the trap of borrowing more than they could afford because of insufficient knowledge and information about these mortgage products, which would have helped them make informed decisions.
For more information on the foreclosure crisis, you can always visit Foreclosure-Support.
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