Make California Home » Plan.

Obama’s Stimulus Plan: We Need Mandates to Spur Demand

daka — Thu, 19 Nov 2009 16:28:21 +0000

For those 9 million Americans classified as struggling homeowners the idea that $275 billion is being pumped into the housing sector through President Obama’s recently unveiled stimulus plan gives an initial ray of hope. But from where I sit as a long time realtor, business owner and community activist, it looks like the right hand doesn’t know what the left hand is doing.Here are the details. Of that $275 billion being pumped into the economy the expectation is that about 5 million homeowners who have little equity or are upside down in their mortgages will be able to refinance through Fannie Mae or Freddie Mac. $200 billion has been allocated to back these entities. The other $75 billion is supposed to encourage lenders to make loan term modifications for those in foreclosure, or who are at risk of going into foreclosure. So what’s missing?Missing: No Cohesive Plan, No Mandate for IndustryBasically, there are 3 things missing here.1) It’s not enough.Ok- I understand that some of the money needs to go to drive jobs in other sectors of the economy. But when it’s going to bailouts that fund already failing car manufacturers, that just takes money away from where it would be most effective. There are a lot of folks angry at the idea of helping out an individual homeowner who got in over his head. Yet we’re bailing out CEOs of major businesses instead of funneling that money to keep the housing economy viable.2) No mandates for CreditorsWhat good will any of this do if qualified people still can’t get home loans? Every day I see banks and creditors refusing to make loans or modify loans. I see people with high credit scores waiting months for loans. This hurts us all!What about the whole credit rating system? Why don’t we hear anything about how Equifax, Experian, Transunion are impacting this crisis? There should be mandates that require these organizations to report credit accurately. Where do they play in the scheme of things? I’ve heard that there is a new scoring model coming out for FICO. No one understood the rules on the last one. Is this any different?Frankly, until there are mandates to make adjustments the banks and creditors and credit raters aren’t going to do it. More houses will sit empty and more folks will continue to lose their homes. It’s a vicious circle.3) No Cohesive PlanI heard HUD secretary Shaun Donovan the other night explaining how the stimulus plan will help bring some “underwater” homeowner payments down to 31% of income, if they are backed by Fannie Mae or Freddie Mac. What I didn’t hear was how the mortgage insurers play into this whole deal. That’s why I feel that this whole plan is so one sided. Incentives are just a drop in the bucket.From Where I SitHere’s my unique perspective. I host a real estate talk show at www.WeTalkRealEstate.com and sponsor a social network for real estate professionals at www.WeTalk247.com . Everyday I hear from the people most impacted by this whole situation. The callers to my show and podcast are homeowners, people facing foreclosure, and realtors all trying to make it through this crisis. Some of Obama’s stimulus incentives will help some of these folks. What it won’t do is enable many who want to buy to do so.Without a cohesive plan that includes the mortgage insurers, bankers, and creditors, credit scoring organizations and requires some sort of mandate on loan modifications and lending rates it just won’t be a long term solution. The housing portion of the economic stimulus plan just doesn’t subsidize interest rate reductions for borrowers in a way that will spur demand and recreate a housing economy that will benefit everyone in the long run.

Obama’s Stimulus Plan: We Need Mandates to Spur Demand

daka — Thu, 19 Nov 2009 11:23:17 +0000

Obama’s Stimulus Plan: We Need Mandates to Spur Demand

daka — Thu, 19 Nov 2009 01:26:29 +0000

Obama’s Stimulus Plan: We Need Mandates to Spur Demand

daka — Wed, 18 Nov 2009 00:24:22 +0000

Obama’s Stimulus Plan: We Need Mandates to Spur Demand

daka — Tue, 17 Nov 2009 09:26:52 +0000

Obama’s Stimulus Plan: We Need Mandates to Spur Demand

daka — Tue, 17 Nov 2009 04:23:28 +0000

Obama’s Stimulus Plan: We Need Mandates to Spur Demand

daka — Sat, 14 Nov 2009 22:02:59 +0000

The Early Stages of This Loan Modification Plan

daka — Mon, 09 Nov 2009 16:58:41 +0000

When the first stages of discussions and talks got underway on Obama’s loan modification program, many people responded with good cheer and a healthy dose of curiosity. Many politicians were uncomfortable in their division of their stance against, and with Obama’s loan modification plan, that would provide incentives for lenders to help homeowners keep or modify their mortgages on their homes. There of course, are stipulations for the handing out and the usage of these loans. This includes a lending company to stimulate the housing economy by loan modifications to a homeowner deemed eligible to receive the loan. Each year the recipeints could receive up to a thousand dollars for up to five years in the maintenance of their mortgage.

Within the early stages of this loan modification plan, many people were already bailing out of their mortgages by the thousands and leaving lenders with a bad taste for helping America’s homeowner at all. On the other side, with money already being given to these large corporate banks, holding companies and investment companies, most American’s were already losing their faith in the companies who handle, negotiate, process and finalize their loans.

This seemed to be a standoff at first with politicians heating up the talk radio shows, firing rounds at the President from their political podiums, and hounding the House and Senate representatives with fervor over the government bailouts. This was not something that suddenly sounded just and fair for the average American, because once again, the Federal government was bailing out the bad guys.

The reports of the housing industry’s downfall, came on the heels of homeowners being served with eviction notices, while still other people were ultimately defaulting on loans that had sky-rocketed to momentous proportions. This grand scheme of Obama’s loan modification program came into the light as a way to use federal money, up to the tune of 9 million dollars to help lenders adjust and modify their client’s home mortgages. How sad to see the Federal government bailing out these same companies that were looking for their own skins to be saved, while still closing down on the necks of the American people they were set upon to make loans to.

This was just one of Obama’s first ventures into helping America get back onto its feet, and it comes hot on the heels of the occupancy of the oval office. With the promise of the American dream held in the hands of the federal government, one wonders just what the loan modification will eventually do for the American homeowner.

Your Helping Aid Medicare Supplement Plan

daka — Mon, 09 Nov 2009 16:14:30 +0000

Medicare supplement plans or Medigap is the private health insurance plans that are for those people who already have a Medicare policy. The Medigap or Medicare supplement plans helps the Medicare beneficiaries to bear that extra medical cost that are left aside by the original plans. The name Medigap is suggested because it is believed that these policies bridges the gap between the Medicare coverage and the original expenses or the total bill charged. However in the recent studies it is seen that in the United States about 18% of the people having original Medicare policy goes for the supplement plans also.Medicare supplement plan is your helping aid to pay off the excess of your medical bill that is left aside by the original Medicare plan. As the name suggests, it is a supplement plan that is bought along with an original Medicare plan. In an original plan there always remains a gap and it cannot pay for the total bill charged. Therefore there is the need for a supplement plan to clear off your dues. It actually bridges the gap between the policy coverage of the original plan and the total bill charged. Therefore a supplement plan is always needed for you if you need to get full medical coverage from your insurance plan.It is to be noted that the Medicare supplement plans of Medigap plans are totally sold and administered by the private companies and the government has no hand in it. But there are still some preset rules that are to be followed by every company. As for example the companies can only offer 12 standard Medigap plans named A through L. And it is also to be mentioned that the plans under the same letter cover is bound to provide same benefits irrespective of the companies selling them. All that could differ is the amount of insurance premium nothing else. Therefore here in this article let us have a look on some of the benefits provided by the Medicare supplement plans under their letter covers. Part A Medigap plan is your hospital insurance. To go for a Medicare supplement plan a person is required to be enrolled in part A and B of original Medicare before they can go for a medigap policy. A person may obtain a Medigap plan on a guaranteed issue basis during the open enrollment period, which begins within 6 months of turning 65 or enrolling in Medicare Part B at 65 or older.Part C is that part of the insurance coverage or such a Medicare supplement plan that combines both Part A and B coverage. It also provides some additional services. The Part C Medicare supplement plan is offered only through Medicare approved private insurance companies. The Part D Medicare supplement plan is for your prescription drug coverage. It helps you pay for the medications prescribed by your doctor. In this case it is to be mentioned that the policyholders who enroll themselves for standalone Part D plan may not retain the drug coverage portion of their Medigap policy. But the beneficiary may choose to remove drug coverage from their current Medigap policy and retain all other benefits.

Medigap: A Helpful Supplement Plan

daka — Mon, 09 Nov 2009 11:13:56 +0000

Medicare supplement plans or this type of insurance is the newly added thing. Medicare supplement plans or Medigap is the private health insurance plans that are for those people who already have a Medicare policy. The Medigap or Medicare supplement plans helps the Medicare beneficiaries to bear that extra medical cost that are left aside by the original plans. The name Medigap is suggested because it is believed that these policies bridges the gap between the Medicare coverage and the original expenses or the total bill charged. However in the recent studies it is seen that in the United States about 18% of the people having original Medicare policy goes for the supplement plans also.Now you have to know the benefits of this plan. There is an eligibility criterion, which you have to obey. Most of these criteria fixed by most of the insurance companies are the same. To go for a Medicare supplement plan a person is required to be enrolled in part A and B of original Medicare before they can go for a Medigap policy. A person may obtain a Medigap plan on a guaranteed issue basis during the open enrollment period, which begins within 6 months of turning 65 or enrolling in Medicare Part B at 65 or older. And also that I this period no medical screening is required.But besides open enrollment the issuing insurance company may also put forth the requirement of medical screening and also may obtain an attending physicians statement if it is felt necessary. But the thing that should be kept in mind is that this policy is not compatible with any other forms of private medical coverage as for example a Medicare Advantage plan.Insurance policies may vary from state to state. According to the law, the companies can offer only 12 Medicare supplement insurance plans. And these plans are named from A through L and each plan provides different sets of benefits. In 2006 it has been clearly stated that the Medigap Plans H, I, and J, cannot be sold to people with prescription to drug benefits, although there is a lax of this rule for people who already have those plans and they can keep them.It is however advised that you should go through the policy statements carefully before deciding to choose one best fit for you. And for the concern of the policyholders it can be said that the all the plans with the same letter cover, no matter which insurance company sells it must cover the same benefits. As for example it can be said that all Plan E policies have the same benefit coverage irrespective of the insurance company selling it. However, it should be kept in mind that the amount of premium can vary with company.Thus it is clear that the Medigap policies helps you a lot to pay for the part of the medical bill that is excluded from your original Medicare coverage. But the thing you should know is to choose the right plan that would suit you the best. Therefore please read the offer documents carefully before choosing the one for you.