Initiatives to Help Struggling HomeownersAccording to CNN, just recently, the Obama administration announced another program to help homeowners to avoid foreclosure. The Department of Housing and Urban Development said it would extend the period of time unemployed homeowners with Federal Housing Authority-backed mortgages from four months to 12 months. This is in the hopes that people will have a greater chance to find work and avoid losing their homes. This program will allow people to make up for the skipped mortgage payments only when they return to work.
Because of the real estate situation of these past several years, there have been several programs and initiatives to help homeowners who are struggling to still remain in their homes. However, some still feel these assistance programs have fallen short in supporting those who need it most.
There was the Home Affordable Modification Program that was launched in March 2009. This was an early disappointment not only because it didn't really deliver on helping three to four million borrowers but also because those who were issued the modifications quickly re-defaulted on their loans. It did get better, as of March 2011 over 20% borrowers with HAMP modifications were at least two payments behind twelve months after their loans have been modified. The Treasury Department says this program has lowered borrowers' payments by $6.8 million.
The Second Lien Modification Program that was launched in April 2009 helped people who have a second mortgage or home equity line of credit in addition to their primary mortgage. There was about 28,000 homeowners to participate. Under SLMP, the government paid cash incentives to the lenders of the second loans so they will allow refinancing to proceed. So far, the Raleigh local movers found out that only 1,524 borrowers have had their mortgages extinguished and 26,000 people received a reduction.
The Hardest Hit States Fund launched in February 2010 set aside $7.6 million in funding states that have taken the biggest hit since the real estate downturn. The money was to be used to prevent foreclosure. 18 states and the District of Columbia participate. The states can use the funds however they see fit. 70% of the money went to support programs to help homeowners who have lost their jobs. Another 20% is used to reduce mortgage principal and the rest is going toward outreach and foreclosure counseling.
These are some of the programs that are out there to help people who are struggling to stay in their homes. If you're one of the unfortunate families who's going through a foreclosure, please call the local Raleigh moving specialists for a professional and affordable move. We'll take care of all the details and protect your personal belongings as we move your entire home to a new location.