The politicians and the President have a new plan to help homeowners out of foreclosure. We refer to it as the "Obama Plan". Many families are wishing for the best, but if the government has shown us anything, we know it's always best to have a back up plan.

You'll likely remember last years $320 Billion "Hope For Homeowners" program. This was the presidents attempt to provide help then, which has been considered a huge disaster. The plan was supposed to provide funds to help homeowners refinance and the money was supposed to help banks provide new loans. The program was touted as the savior for borrowers who were facing foreclosure.

The end product, according to Fox news, was only one saved home. That's right...one single home. Don't get me wrong, I am, sure that one person is endlessly grateful, but $320 Billion to save one home? What exactly are they spending the rest of the money on!

My simple explanation for this is that the politicians know absolutely nothing about saving homes from foreclosure. In fact, I would be surprised if anyone who played a part in that bill ever helped a single person out of foreclosure, prior to that one home.

Now, the latest "Obama Plan" solution:

Obviously, after this last experience with the presidents "bailout plans" we didn't have high hopes for this one either. And it's not just us; according to the Wall Street Journal headline article of April 15th 2009, GMAC mortgage now estimates that only ten percent of borrowers in trouble will be helped by the bailout plan. Wait just a second! What happened to the 4 million mortgages that were supposed to be helped, as claimed by the politician? The Wall Street Journal is a pretty popular newspaper and GMAC is a very large lender, so I tend to take what they say pretty seriously, But it doesn't end there.

MSNBC talkshows last week decided to do their own undercover work and find out how helpful this new bailout plan would actually be. One of their commentators actually tried to find help under the new bailout Plan.

These where his unsuccessful and scary results:

1. In the majority of instances, he could not reach a loan servicer to provide any help at all, and

2. Where he did actually reach someone, none could explain if he would qualify for the Obama plan, or even provide much further assistance at all.

3. Other not-for-profit companies were not any better.

It seems, as usual, no one really understands what's going on and no one wants to make any changes to make it easier for the homeowners facing foreclosure.

When it comes right down to it, an experienced (for profit) company, operating legally, will have a much better chance of helping you with a solution when you are facing foreclosure. Lenders and not-for-profit companies simply don't have the funds, experience, or the staff to help the number of people facing foreclosure.

Another big part of the picture is incentive. What incentive does a not-for-profit have for helping you? They get paid either way and they don't get paid much, so they can't afford to hire someone experienced enough to get the best modification for you. A for-profit company only gets paid on a successful workout plan, so they have a huge incentive to get you an affordable loan mod and to do it quickly.

As for the government bailout plan; it's great for the 10% who qualify, but the rest of you better start making plans to save your home yourself, or find a professional who can do it for you.

Ultimately, it's not possible to think that one government plan can save every house in the USA. Foreclosures will never come with a one size fits all "government" solution. Each case needs to be helped individually and they almost never fit into a similar mold.

Like always, we recommend choosing three possible solutions to stop foreclosure. Never rely on one option and never, never, never, wait for the government to bail you out, just feel happy and very lucky if you are part of that 10%!