A new initiative was recently revealed by the administration of Obama aimed at helping unemployed homeowners try to stay in their homes while they seek work and try to defend the exclusion.
Through the initiative, which will enter into force on 1 August 2011, banks and servicers, mortgage are needed to enable eligible homeowners to defer some or all of their payments of mortgage for 12 months or more, while seeking employment.
Although still owed the full mortgage with accumulated interest, borrowers who pay half of their mortgage can have up to 24 months of patience (an agreement between the lender and the borrower to delay the exclusion) compared to 12 months for borrowers who do not make payments.
It will be this new initiative helps?
Secretary of housing and urban development Shaun Donovan hopes to help "tens of thousands of families" with this initiative and said, "the greatest promoter of foreclosures now is unemployment". Donovan said the term expanded it is necessary and reflects "long takes borrowers unemployed to find a job."
The national unemployment rate almost 10 percent, Americans are experiencing the longest average unemployment figures were for the first time in 1948. The average duration of the unemployed have been out of work is more than 9 months.
Do you qualify?
While this new plan serves as a network of temporary security for some Americans, has been criticized by some as a St. Petersburg Times is too limited as that only applies to loans backed by the Federal Administration of housing (FHA). It has limited scope because only 14 percent of all mortgages are backed by FHA.
The administration of Obama recognized this and said, "Given the size of the real estate market, any federal program is going to be able to solve the housing problem." In addition, some unemployed borrowers who qualify for the Department of the Treasury home affordable modification program (HAMP), also will benefit from the initiative introduced last week.
In addition to helping needy families, additional foreclosure prevention has obvious benefits such as helping to stabilize the housing market. Critics suggest Freddie Mac and Fannie Mae, which owns or ensure that approximately half of the mortgages in the nation should be high to already participate to the American taxpayer investment of $ 163 million to help keep them from financial ruin.
For more information about this initiative please read the full sheet on the website of the Department of housing and urban development of United States.
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