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Obama's Policies: What They Mean for Distressed Homeowners

Here's a question for Boston real estate attorneys: Is a policy wise if it promotes homeownership?

Now, I understand that I may have just asked a very broad question. Policy analysis involves way more than the isolation of one issue alone. But these are some of the arguments being made in favor of the Fannie Mae and Freddie Mac. People who support the establishment of Fannie Mae and Freddie Mac say that their very existence promotes homeownership. But is that the only reason to keep these two institutions?

I'm not going to get into a discussion on Fannie Mae and Freddie Mac, because I fear it may bore our average blog reader to tears. But I will use this post to ask some questions to the reader, and talk about the recent efforts made by the Obama Administration to help struggling and distressed homeowners.

And I will leave some of these questions open-ended, in the hopes that our reader may feel like discussing these issues with a Boston real estate lawyer.

For one: Did you feel that the First Time Homebuyer's Tax Credit promoted homeownership? Did you feel like it helped the economy? I know that many Boston real estate attorneys are skeptical. Some say that it provided an artificial boost to the economy. Some Boston real estate lawyers go as far to say that the First Time Homebuyer's Tax Credit actually increased the number of foreclosures, because lenders became more zealous on their defaulting borrowers in the wake of a lineup of potential buyers.

Secondly: Did you feel the impact of the Obama Administration's foreclosure prevention strategies? The Obama Administration tried to convince lenders loosen their standards in loan modifications. As such, there may have been a belief among many Boston real estate attorneys that lenders would be negotiating down more loans. But did it really work that way? Many are skeptical.

Here's what we do know about loan modifications: If you want to ask your lender for a home loan modification, you will need to have your papers in order. Lenders won't be relying on "the honor system" much longer and will require you to show that you are capable of paying back the new loan. It's also wise to be able to show some hardship, as some lenders may ask you to prove hardship in paying your original loan as a reason for them to modify your loan.

If you need help gathering your documents and preparing any necessary hardship letter, contact a Boston real estate lawyer today. Also, have a look at the related resources links below for further reading.

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