Today, the Obama Administration announced that homeowners with mortgages backed by the Federal Housing administration or those participating in federal foreclosure programs will be given a year forbearance on their payments, according to Bloomberg.
Previously, troubled homeowners were only granted three to four months forbearance. Banks will be required to give these homeowners at least twelve months reprieve from their loans. The unpaid payments are to be added to total loan balance and will accrue interest.
The new regulations apply to any bank which provides FHA-backed mortgage loans or those who participate in federal mortgage assistance programs.
Troubled homeowners can contact a foreclosure attorney, who can make keeping their home a possibility.
Unemployment is one of the primary reasons a person faces foreclosure. According to HUD Secretary Shaun Donovan, a few months is “inadequate” for the unemployed. In a written statement, Donovan asserted that sixty percent of the unemployed are out of work for 30 days, and forty-five percent are out of work for more than six months.
Though the unemployment rate has consistently dropped in the first half of 2011, there are still over 400,000 people out of work. A foreclosure attorney has the necessary skills to help the unemployed stay in their homes. These individuals deserve some assistance, and the housing market cannot bear the large number of foreclosed homes.
A foreclosure lawyer can assist an underwater homeowner with loan modification or contest the foreclosure.
