Tech & Biz

US Foreclosure Prevention Program Launches

by Jordan Yerman | March 4, 2009 at 02:16 pm

140 views | 12 Recommendations | 2 comments

President Obama's foreclosure prevention program comes into effect today. You can visit hud.gov for the details, as well as a quick self-assessment form.

The plan is meant to help struggling homeowners refinance their mortgages to get the remaining mortgage amount below the overall value of their home, as well as provide incentives to lenders to give you a better deal.

However, if your property value has dropped to more than 5% below the value of your home, then this program will not help you.

The $75 billion effort, dubbed the Homeowner Affordability and Stability Plan, boils down to two basic solutions:

First, the government is aiming to help more homeowners refinance into new low interest rates.

Second, it provides incentives to lenders and servicers to restructure your mortgage to more affordable levels.

Until last year, had you ever heard the term "underwater" in regards to home value before?

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eastvanray

at 16:19 on March 4th, 2009

US housing is going down over 18% according to this 2009 Standards & Poors report. So much for this assistance plan.

http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_Release_022445.pdf

Paschen

at 21:59 on March 4th, 2009

I would take a different approach and clean house first wile putting every thing on a ice for a 6 to 12 month period so no one can be kick out or become home less wile we reform the system.