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Another bail-out plan approved June 23, 2010 by the Obama
Administration, the "Keep Your Home" program. California will receive
$699.6 million to "work with lenders" to make principal reductions.
Under the new program, there will be a $50,000 cap on principal
forgiveness.

Since property values in Riverside County have dropped 50-60% that leaves the majority of homeowners more than $50,000
underwater. But wait! The state will be asking lenders to 'MATCH" the
amount the state spends on principal reduction - dollar for dollar!

The biggest obstacle I see with this is the success of this program will
depend on the cooperation of the lending industry.

Let's look at the rest of the bail-out plan. 1.5 billion will be given in all to five
states; California, Arizonia, Michigan, Nevada, and Florida. Each state
will use their portion of this money differently.

As for California, it will use its money for principal reduction, mortgage
reinstatement, unemployment mortgage assistance, and when all else fails
Transition Assistance which is actually a HAFA Short Sale with a
one-time payment of up to $5,000 to relocate.

The plan is to take effect before November 1, 2010. Hummm, that will give the banks plenty
of time to come up with a plan of their own.




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Comment by John Taylor MBA,CSP,HRC on June 29, 2010 at 7:43pm
The program is also voluntarily so they will help who they want without risking a lot. Just because their is a cap does not mean they will try to get their. 50,000 maybe 25,000
Comment by Jan Baron, RDCPro, CSP, BPOR on June 24, 2010 at 10:39pm
Well, that's exactly what was said in his campaign. "We have to spread the wealth around" Sounds like Socialism to me. Sure doesn't sound like the land of opportunity anymore.
Comment by Jesus (Jesse) Gonzalez on June 24, 2010 at 9:17pm
John Doe Tax Payer.....get ready to pay up. Take from the haves and just give to the have nots. I have a client who is from Romania and he told me today, he is thinking of gonig back to Romania because America is becoming more and more communist by the day an we don't even see it happening.

He and I got to discussing this and he said something that just blew me away. He said unions and bail outs to destroy the economy is the biggest hurdle communist have and once they accomplish a collapse of the economy, they take over.

We have got to stop the madness.

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