November 14, 2008

"I think it's a crying shame people losing their houses right and left, nobody's offering to help," said homeowner Curtis Carlisle.

Until now. The Federal Housing Finance Agency announced a new program this week. If homeowners default for at least three months on their mortgage, live in their home, and don't file for bankruptcy, the agency will lower their monthly mortgage payments if they qualify. But the plan is getting mixed reactions.

"I think it's a good idea that the banks want to try and help people like that but I don't think it's a good way of approaching it," said Joseph Howard.

Some say that the new plan could lead to a few homeowners defaulting on their payments on purpose in order to get them lowered.

"Looking at the recent trends I would not be surprised if some people took that rout," said realtor Jim Duncan.

"I remember when I was a younger person, that I came to, there was one time when I couldn't make my mortgage payment but I went to the bank and negotiated with them and I don't think that by defaulting for three months that should be a good criteria, that's just rewarding irresponsibility," said Howard.

Others in support of the program think that if Wall Street is getting help, why not Main Street. Carlisle whose wife and he are both in the real estate business say there are responsible people that could use the help.

"Eventually the money runs out, and in today's market in our business you, you're relying on the real estate market to make a living," said Carlisle.

But there are some that are against all bailouts, and say that though homeowners should get some type of help, this may not be the answer.

"Something needs to be done for the homeowners but I think that this may not be the right thing, that it may just be forestalling the inevitable for a lot of these people," said Duncan.