California, USA—As President Barack Obama and his key advisors consider how to spend the rest of the bailout funds, it is reported that President Obama would like to make sure that the banks that have been bailed out do more to assist in this lending crisis. Obama and new Treasury Secretary Timothy Geithner are trying to take every measure possible to bring both consumer and investor confidence back into the economy.
Banks are being blamed for not doing anything substantial with the funds they have received thus far and many in Washington are still angry with the high bonuses and perks being distributed among the top officials and executives of these corporations.
The real estate industry and especially homeowners are hoping that President Obama will make it compulsory for banks to look at their grievances and assist homeowners with their mortgage situations. Bridget Toomey of the Loan Modification Foundation was quoted as saying “If all banks and mortgage lenders were open to working with homeowners on loan modifications, the foreclosure rates would decrease tremendously and the losses would be minimized for everyone.”
Of course she also acknowledges that in the past few months, both banks and mortgage lenders have been more than open to home loan modifications for their customers. A lot of families have been able to save their homes by submitting an application and getting their monthly payment reduced and interest rates modified with the help of a qualified consultant.
Market analysts believe if banks are genuinely pushed by President Obama to work with homeowners to modify loans as a bailout condition, it would help millions of families across the United States while also positively impacting the economy in general.
