December 17, 2017

Unemployed Homeowners Get Help

There is new hope for jobless homeowners thanks to the Obama Administration. Beginning August 1st, the foreclosure prevention program will be changed, allowing those out of work to stay in their homes longer while trying to get back on their feet.


The Federal Housing Administration will extend the time that homeowners can miss mortgage payments, from three or four months to a full year, before the foreclosure process starts.

Seal of the United States Department of Housin...

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Rev. Lucy Kolin of the Pico National Network, a group of faith based community organizers said of the changes “Today’s action is yet another step toward breaking the link in America between losing your job and losing your home. It’s only fair that the big banks who caused so much job loss in America extend relief to the millions of families who’ve lost their jobs as a result of the financial crisis.”

This will only apply to FHA-backed loans, but these represent 14 percent of all current mortgages, 25 percent of new mortgages, and homeowners who are currently in the government’s Home Affordable Modification Program (HAMP). That being said, it may only help “”tens of thousands”" of homeowners, according to Shaun Donovan, Secretary of Housing and Urban Development.

In 2010, approximately 17,000 homeowners were helped by the government supported delay on mortgage payments. Due to unemployment, roughly 3,500 people per month with FHA mortgages fall behind on their payments, and a further 10,000 jobless homeowners were helped by delaying their payments by three months.

Donovan is hoping that other mortgage companies such as private lenders and the government controlled Fannie Mae and Freddie Mac, will follow suit.

While Fannie Mae and Freddie Mac have not commented on Donovan’s suggestion, they have new rules beginning October 1st that will help homeowners who are unable to pay their mortgage for certain reasons. These include when a home of place of work has been destroyed, a long-term disability or illness that affects the homeowner or any dependent, or if the mortgage holder has died and the property is in probate. In these cases, the mortgage payment can be delayed for up to a year.

While the government’s original foreclosure program, which started in 2009, helped borrowers by lowering their monthly payments on a trial basis, it struggled to get them permanently modified. Even though over 1.6 million homeowners took part in the trial modification, about 854,000 of them have since dropped out of the program.

For more information, click here:

SFGate.com

Obama Administration Makes Anti-Foreclosure Program More Generous To Jobless


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Comments

  1. Denise and Charles Knox says:

    I have appointment tomorrow and need to get hold of the gentlemen I have appointment with for directions and time. It’s in Pittsburgh PA. PLEASE CALL BACK URGENTLY

  2. Lawrence Agee says:

    Is there a HUD office in Burlington?

  3. C. Yung says:

    Please advise if it is possible to refinance my home while I am unemployed in Nebraska. I am currently in a home preservation program through my lender, Wells Fargo. Wells Fargo states that I cannot refinance until I am employed. Is this true? I am more than ready to leave Wells Fargo and use another company as a lender if needed. I currently receive unemployment where I would be able to make $350 monthly payments. I will gladly mail or upload any documents that are needed. Thanks for your assistance!

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