Couple of our leaders are thinking creative financing is not dead. They are wanting to tap into the TARP funds to help distressed homeowners.
The idea is to take 3 billion to help those homeowners, while tapping another 1 billion for local and state governments to use to purchase foreclosed and troubled properties. Additionally, giving bankruptcy judges the ability to make changes to interest rates and principal owed to creditors. Needless to say, this has met with some resistance from the financial community. "The combination of unemployment and foreclosures may be the greatest threat to our economic recovery," Waters said.
This week on the Hill, this is but one of more then 100 other proposed amendments to financial reform being introduced. Some believe that this sudden move by members of congress, is coming from the Congressional Black Caucus, who have been putting the administrations feet to the fire on how unemployment and foreclosures are effecting minorities. With only 6% of homeowners enlisted in the administrations foreclosure prevention programs, concerns that help is just not reaching people. Fighting over the low numbers reported are circling around homeowners that have submitted paperwork to get on the program and that they are waiting approval to benefit from the program. While the Treasury Department claims people are not submitting the paperwork and supporting documents correctly. Seems like the dogs are chasing their tails.
In a nut shell, the financial sector is not happy, the government is in the middle (or so they are trying to) and the American homeowner is hanging on looking for help wherever it comes from.