Real Estate News Daily

The program was initiated by the State to help beleaguered homeowners with the support of the Hope Now Alliance that is comprised of mortgage lenders and servicers who are working to amend existing mortgages to prevent foreclosure. As the figures show, there is still a 70% shortcoming in the effectiveness of the program for even with their support, 70% of all homeowners are still 2 months behind their mortgage payments. Homeowners are criticizing the program as being too slow and this time lag results in many still losing homes. Even with the program in place, a 16% of homeowners are still facing foreclosures so homeowners are hoping for a revision of processing procedures that would speed up the process as they hope fight for their homes.

As promised, the proposal for the federal government to offer loans to homeowners who are under threat of losing their homes is going to the house for deliberations and a subsequent ruling. The move is aimed to keep people in their homes as they continue to fail to make their mortgage payments. The loan would allow people to borrow as much as 20% of their mortgage which would give them time to regroup and also give the economy time to recover from the economic slowdown. The problem is that if the Federal government does not do anything now, they still end up losing in the long run. As people lose their jobs and also the ability to pay their mortgages they get thrown out of their houses, end up on the street with the state picking up their housing, medical care and the many other costs. The end product, strain on the Federal government again, sot hey are moving to take some steps to alleviate the increasing problems with defaults on mortgages that is running into the millions since the problem began last year.