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 Post.
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 monthly payments.
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.
Foreclosure attorneys 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 recover.
