Real Estate Marketing & Beyond
The Obama administration has just announced a new program which is aimed at keeping unemployed homeowners in their own homes.
Obama announces new initiative to help unemployed homeowners stave off foreclosure. Image courtesy of Blackradionetwork
This new initiative will extend the current allowance of a few months forbearance on mortgages to twelve months. It’s thought that this new scheme could benefit thousands of homeowners, although not everyone will be eligible. This action is necessary as the unemployment rate is still above 9%, and the economy is being slow to recover. Figures for May showed that 6.2 million unemployed had been out of work for at least 27 weeks.
Last Wednesday Obama said that housing has been one of the most difficult problems to solve, and said ''The continuing decline in the housing market is something that hasn’t bottomed out as quickly as we expected, and so that's continuing to be a drag on the economy. We've had to revamp our housing program several times to try and help people stay in their homes and try to start lifting home values up. We are going back to the drawing board, talking to banks, try to put some pressure on them to work with people who have mortgages to see if we can make further adjustments, modify loans more quickly.''
New plan will grant unemployed homeowners 12 months forbearance to prevent foreclosure. Image courtesy of Newshour
It was nearly ten years ago that the Federal Housing Administration began offering four months of mortgage relief to unemployed homeowners. The Home Affordable Modification Program has been giving three months relief since last year, with those servicing mortgages under this program being expected to follow the voluntary guidelines.
Anyone applying for one of the newly revised programs must be actively looking for work, and anyone who is able to pay a proportion of their loans is obliged to do so. It's difficult to see a downside of this program as it should avoid further foreclosures by giving borrowers a valuable breathing space to get back on their feet.
What about those of us that are disabled and cannot work and are collecting disability. I get 988.00 a month and my house payment is 605 a month. DHS thinks 103 in food stamps is enough to carry me through and that is why I live on Chocolate milk most of the month. My home is financed with Vanderbilt mortgage who demands payment and refuses to work with anyone even though they have joined in on Save My TN Home they will not cooperate.
Good point Brenda. I think it's more an effort by the government to 'look' as though they are doing something, it's highly doubtful they can really do anything to help people, otherwise they would have thought it through an not neglected those who cannot work.
but doesnt stop the value of the house from falling that will never be back to what it was when we bought, so why pay on something that keeps dropping? NOPE
lol, yeah I think many people feel the same way as you do these days!