Undoubtedly, this is one of the worst economies in the nations long and storied history. If you are being real about the situation, this is ranking right up there with the great depression, although things have not gotten as bad as they did then, but many think they will.
In an effort to curve what many feel is a worsening economic future, the Obama administration approved the spending of $3 billion dollars to homeowners that are unemployed and need some help as they are under water in their mortgage agreements. This is on the heels of numerous attempts by the administration to make some sort of dent in the falling economy. It just seems that more and more bad news continues to follow.
According to the Huffinton Post, “The Treasury Department said Wednesday it will send $2 billion to 17 states that have unemployment rates higher than the national average for a year. They will use the money for programs to aid unemployed homeowners. Some of those states have already designed such programs.” View source here.
Before the critics jump all over this one, the funds are being secured with the $700 Billion Tarp funds that are lying around and need to be put to good use, so this is a great attempt. It seems that the program will reward lenders that are willing to work with homeowners and lower the monthly payments of these homeowners to give them a chance to stay in the property.
California, Florida, Illinois, and Ohio will receive the most funding in this program, which includes $50,000, zero percent loans for special qualifying homeowners to get better control of their financial situation. The fact that Michigan wasn’t at the top of this list was kind of puzzling to us, but it is what it is at this point. Maybe this move is more political than anything else and Michigan isn’t pulling the political clout needed to get the extra funds.
What do you think about the Unemployed Homeowner Bill?
Do you think this is good, bad, or worst for the economy? Will it pull us out of the whole and get things rolling again? It would be great to hear your insights on this situation and how it will effect the economy as a whole or it’s lack thereof.
