In response to the large number of homeowners facing foreclosure, President Obama established a prevention program to help millions people in financial jeopardy. Since the start of the program more than 170,000 people have been permanently helped with the mortgage modifications. That is 15.5 percent of all the people entered the program. There have, however, been almost 89,000 people who were denied for assisted for being unable to meet the programs criteria. The number of people who are receiving permanent help is steadily rising as the program goes on. The administration is continuing to put pressure on mortgage providers to make a decision on those who are still awaiting a determination on their applications. There are an estimated 835,000 people in the trial period awaiting a decision.
Originally, the administrators of this prevention program had a goal of permanently helping four million people with their mortgages. The goal has been adjusted since the beginning. The current goal is to get four million people into the trial period of the program. This does not mean that all four million will in fact receive permanent assistance. Unfortunately, with so many people waiting on a decision this slows down the process drastically. In many cases, while these people are waiting for their decisions to be made they will potentially still be forced to go into foreclosure.
In order to do more to help, President Obama has instituted other new programs designed to help the unemployed and those who are barely treading water. The alternatives are meant to help those who do not qualify for the modifications of the original program. The administration is offering to pay borrowers, servicers, and investors an incentive to complete short-sales. A short-sale is when the bank agrees to sell the house for less than the amount of the mortgage. This will help many homeowners get out from under the mortgage they can no longer afford. This also helps borrowers avoid foreclosures. Within the first month of the incentive being offered the national foreclosure rate dropped by two percent.
Although many people have been helped through the administrations programs, experts are still expecting a surge of foreclosures to occur in 2010 as more people are turned down on their attempt to modify their home loans.
[...] should be considered that it is being noted at a time when the incentive to buy houses is high. Mortgage rates have never been so low. It is now 4.36% as per the survey conducted by Freddie [...]
Hey, I throroughly enjoyed this thread. There are a lot of great posts here. I am going to do a little studying on this and stop back and write something.
I will be stopping back soon to check out more articles like this and this website as well.
In the meantime…. Keep on blogging!
[...] trickling in of foreclosure prevention funds from the federal government indicates that the stabilization programme is not without success [...]