With more than 10 million homeowners facing foreclosure, measures to slow down the number of Americans losing their homes to banks have been paltry, at best. Of the 3 to 4 million borrowers whom applied for assistance under the Home Affordable Modification Program (HAMP), fewer than 400,000 have made it to loan modification. The latest kitchen sink being thrown at the problem is an alteration and addition to the Making Home Affordable program.
Earlier this month, Fannie Mae, the larger of the two giant GSE in the secondary market, launched KnowYourOptions.com. This site offers detailed information via videos, testimonials and step-by-step recipes for keeping your home out of foreclosure.
KnowYourOptions.com is an easy to use menu-driven website. Upon entering, users simply start by clicking on the following choices:
Explore Your Options
Be Prepared
Find Helpful Resources
Hear from Homeowners
While this new program may prove helpful to struggling homeowners oblivious to alternatives that have been available for years, the reality for anyone facing foreclosure is whether or not their job pays enough to cover mortgage and living expenses. Sadly, the deteriorating job market makes this program academic.
Programs contained in the Neighborhood Stabilization Act are more effective in addressing falling home values. If there is a second stimulus, let's hope money is spent from the bottom-up to stabilize real estate markets instead of bank balance sheets.
Question: Would you support your representative in Congress voting yes for a stimulus package addressing foreclosure at its source?
Comments
Being that the wealth of most families is in their home, anything that will save equity would be better than what is being done now.
This is another program that pretends to do something
They need to close down Fannie and Freddie Mae.
I went through the modification program for Freddie Mac and they were just as preditory and the first loan I had. I was mortified, so now I may lose my home and I have a pretty good job, but, the load that they offered was higher than the one I previously had. Terrible, if anyone knows about the new program that is suppose to be available for homeowners, please share, If I am not mistaken it is suppose to lower your interrest rate to 2 or 3 percent which should place you in the range to keep your house.
Van Nixon wrote an article "Obama Helps Homeowners" about a week ago. There is information about a new program that may help you.
What would this stimulus package do, pay everyone's mortgage? If we want to fix the crisis, get qualified homeowners into homes. This is done by removing unqualified owners and finding out exactly what homes are worth. By continuing to prop-up distressed homeowners, we are delaying the inevitable. The source of this problem is not failure to pay, the source is their ownership. Does anyone not think that the banks, GSEs and homeowners are going to lose money? This is going to be painful, but it's the fastest way to a stable market.
Just as we could not let the banking system fail, homeowner caught in the cycle should not be forgotten and allowed to lose their life savings. If you agree that most jobs are created by small business, then you should also be aware that the equity of their homes is often used to start and maintain the business. Lost of homeowner equity represents about 13 trillion dollars of wealth that disappear since the later part of 2006.
Allowing the "inevitable" is a simplicitic approach to a very complicated problem that accounts for 20% of GDP.
The best chance a Homeowner has to accomplish a Principal Reduction is to get a Short Refinance…For any homeowner upside down in value due to an outside influence of the market and has no other hardship that wants to consider this option and get their principal reset back to today’s market value, then click, or copy and past this link http://www.realestatesecretstoday.com/principal_reduction.php for information about what is happening today, results people are getting and how to qualify.
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