Due to the Subprime Mortgage Crisis that reared its angry head in 2007, thousands have already lost their homes to foreclosures. With the economic crisis worsening, more will surely follow. Concerned homeowners should know that President Obama is taking swift action to prevent more foreclosures.
Before President Obama even took office, lawmakers granted the President the second half of the original $700 Billion Asset Relief Program. A good portion of which must be earmarked towards preventing future foreclosures. Larry Summers, a leading economist, who will be aiding the new Administration, assured Democratic leaders in the House and Senate that $50 billion to $100 billion would be used to conduct, “… a sweeping effort to address the foreclosure crisis.”
No precise details on how that money will be allocated have emerged, the new administration wants to get individuals into new, lower-risk mortgages with a reduction in monthly payments very quickly. Industry insiders speculate that President Obama wants to change to a current loan-modification system so that it is a more time-efficient process, by drafting blanket rules for the procedure.
If you cannot wait for President Obama’s revisions to take affect, last year the government launched the FHA Secure program introduced by the Department of Housing and Urban Development (HUD) that you could look into. If you are a delinquent homeowner who meets the HUD qualifications, you may be able to refinance your way out of an adjusted rate mortgage and into FHA-insured loans.
Now, if you are already facing foreclosure you should know that your first line of defense should be to call your lender to see if they are willing to renegotiate your terms. Additionally, calling a nonprofit counseling agency can point you in the right direction for mortgage salvation.
Have you made progress avoiding foreclosure? Please share your foreclosure prevention experiences in our comments section.