Get Government Mortgage Help

The $700 billion government bailout package for banks was a bad idea, but the damage is done. Fortunately though and as a result, two possible avenues for you to get government mortgage help are emerging from this. Read below to find out how.

Very likely at the request of the world's top banks, the US government devised its bailout package to help them survive the credit crisis they created, but the banks aren't using the money to increase their lending. They are hoarding it - or they are using it to buy up smaller banks.

Sheila Bair, the current head of the FDIC, is proposing a new plan of government-guaranteed loan modifications that uses the bailout money not as a handout to banks, but as a way to help deserving homeowners stay in their homes and keep from defaulting on their mortgages.

She is facing opposition from hedge funds - and from political rivals who don't want her agency to gain that much power. In other words, they'd rather get the power themselves. However, her approach has merit. Given that the bailout is an accomplished fact, using some of the newly printed money to keep more homeowners from defaulting just makes plain sense.

There is a new website in the making that homeowners who are in default or who are in danger of defaulting can use to get help in securing a mortgage loan modification for your home from the US government.

So many homeowners who are in arrears on their payments get depressed, don;t see a way out, and don't know how to respond when the default notices start coming in the mail - so they simply toss the envelopes in the trash without even opening them.

Some of these envelopes are beginning to contain offers from people's lenders to renegotiate the mortgage, even going so far as reducing the principal owed as well as the interest rate, and extending the repayment period. There has been talk of offering interest rate reductions all the way down to 2.5%!

This is already being done by some lenders, but the FDIC plan will give lenders who are considering or offering loan modifications in order to keep foreclosures from getting out of hand a backstop, a loan guarantee.

There is no guarantee that interest rates will be negotiated down this far, of course, but even anything approaching it will be a big help. It can reduce your current payment by up to one half, or in some cases even more.

Very soon, you will be able to go to www.Get-Government-Mortgage-Help.com" to access information, online-fillable forms, and secure web-enabled tracking software that tells you the status of your application, with automatic email notices to you if any required item is not yet completed and properly submitted. (Don't try it yet; you will only land on the home page of this site.)

Get-Government-Mortgage-Help.com will not charge any up-front fees. You only pay if they are able to secure the deal for you, and it will never cost more than a single mortgage payment.

Until that time, you can register below for free so we can let you know when the new website is up and running. As always, your private information will be secure. We will never sell it or make it available to others for any reason, except if we are forced to do so by a valid court order.

The government hasn't decided yet whether it will go the way of the FDIC, or the way of the Department of Housing and Urban Development, from where counter proposals to Sheila Bair's FDIC plan are now being advanced.

The exact details have not been worked out yet, but you know that something is coming down the pike because without people being able to stay in their homes and keeping their mortgages, this credit crisis will not abate until every last shaky mortgage is foreclosed on and the homes repossessed and auctioned off.

If that is what happens, we have not even begun to see the depths of this crisis.

Alex Wallenwein