The Obama administration has made efforts to heal the ailing housing market, and help people avoid foreclosure. The Administration’s main program focuses on helping people who obtained risky mortgages or subprime loans, but the principal cause of foreclosure these days is unemployment, according to the New York Times.
The Administration does have a program in place to help the unemployed, but it can be inefficient through various delays, and many people don’t participate. The program for the unemployed offsets mortgage payments for three months which is helpful, but most remain jobless for an average of nine months, making the need for a foreclosure attorney a necessity.
A former economist for the Federal Reserve, Morris S. Davis, approximates that close to a million homes enter into foreclosure because the owner is either unemployed or can’t find sufficient help. As of March 31st, only 7,937 people were participating in mortgage relief programs for the unemployed.
Unemployment is a major cause of foreclosure, but there are other reasons for the issues facing homeowners. Recent investigations have shown that many people have been wrongfully foreclosed upon by banks, and are advised to employ a foreclosure lawyer. Just this week Bank of America attempted to seize a property that had a zero mortgage balance, an oversight a human would have most likely caught.
The “robo-signing” practices of large banks have sent many undeserved people into foreclosure, and launched federal investigations into their handling of delinquent mortgages. To contest the negligent practices of banks, the homeowner should retain an experienced foreclosure attorney.
