President Obama promised to help homeowners facing
foreclosure when he first took office and put programs in place. These programs
fell short of the projected 9 million homes saved and today the President will
announce a new program to help troubled homeowners, according to the Washington
President Obama will announce a new program to help
underwater homeowners. These people owe more on mortgage loans than their
houses are worth and often find it difficult to refinance their homes. It often
takes a foreclosure attorney to
appeal for modification or challenge a foreclosure. Obama’ new plan is intended
to help these underwater homeowners refinance their loans and reduce their
Underwater homeowners are more likely to walk away from
their homes. Foreclosures drive down the values of neighboring homes.
One of the failings of his housing relief programs is the
banks unwillingness to offer loan holders relief through the programs.
Some people don’t have the option of participating in the
program; people who are already behind on their payments must find a foreclosure lawyer to help them
challenge the eviction.
The new program will apply to homeowners, who are current on
their monthly payments, and hold federally backed
mortgages. It will cut the costs of refinancing and eliminates caps for
homeowners who are underwater.
and federal programs have been able to help many people, but more needs to be done.
There are criticisms that the settlement with large banks haven’t gone far
enough and it would take principle write-downs to truly help the housing market