With the global financial crisis hitting really hard in this past year, most homeowners especially in the United States have felt the crunch than most other people. Mortgages have become too much of a burden and as we speak, most homeowners are staring to stop foreclosure right in the face.
With some critics blaming China for injecting too much into the American credit market after their own financial crisis back in the mid 90s, others are blaming Al Greenspan, the former Federal Reserve president for allowing it. But to the average American homeowner, this is neither here nor there. What they need right now is a way out to help ease their burdens on mortgage financing, leaving out the politics to the politicians. With most struggling to keep up with inflated mortgage costs, applications for loan modification on their homes are multiplying by the day.
It is now an established fact that most Americans are actually taking on part time jobs to help them keep up with the inflated mortgage repayments. This year has been historic for the United States with the election of the first African-American president into the White House, but Wall Street is still uncertain as we move into the next year and into his presidency. The hype of change clarion by the president-elect notwithstanding, most homeowners fear their problems are nowhere near the end.
As we go into the New Year however, expectations are a bit high as the president-elect has promised to cut spending on the military excursions of the US especially in Iraq, which will mean that more funds will be available for use in the local market. This remains to be seen however, as they are those who believe that United States security can not be compromised and every effort has to be put to fight the so-called war on terror.
This is a year that has seen many financial institutions go under with the US government being forced to inject a lot of billions to keep them afloat. The situation has messed up most mortgage companies and complaints of delayed loan modification applications abound. It came as a surprise that, institutions of repute in the mortgage industry like Freddie Mac and Fannie Mae could go under and were it not for the proposal to keep them afloat by the Federal Reserve being passed by Congress.
With insurance giants AIG also going under, most home financing institutions were left with little or no choice but to hike home repayment installments with some going up by a margin of close to 10 percent for a period of up to 36 months.
It is the hope of many Americans that the new year will bring good tidings, with many financial pundits advising people to cut down on borrowing and banks and other financial institutions to cut down on excessive lending. Keeping one’s home is the uppermost thing in most people’s minds as they wait with bated breath what the new president holds for them in terms of financial and home security.
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