Homeowners who are unable to make payments on their mortgage may find relief with the new programs implemented by the Federal Housing Finance Agency. The real hope is that financial lending organizations will put a stop to foreclosures to give homeowners a temporary relief. It has been reported that Fannie Mae and Freddie Mac have already sent notice to their loan service organizations to suspend foreclosure sales on occupied single family properties. This in itself will help homeowners to get back on their feet and start making mortgage payments.
The government realizes that when foreclosures are halted for borrowers in distress that they must act swiftly to provide a bailout that will provide the financial help that the homeowner needs in order to save their homes. The problem is that the nation is faced with over two million at-risk homeowners in the position of being faced with foreclosure. The government has created a bailout package that is funded by $75 billion dollars to help the homeowner keep their homes and avoid foreclosure.
The realistic problem is that lots of money in a program will not save homes from foreclosure. There needs to be a plan put into action that will assist the homeowner now and in the future. Money is part of the problem; unemployment is another piece of the problem. A substantial loan to the homeowner will only post-pone the problem of foreclosure the need is for a plan that will work. The Home Modification Plan is expected to help resolve the homeowner’s plans preventing foreclosure.
The lenders are more than willing to work with homeowners to help resolve the foreclosure problems. The housing market is suffering with too many homes on the market being sold under market value. This event and the fact that the banks are now starting to suffer with huge loss. When you put this together it means that not only is the homeowner suffering from this foreclosure problem but so is the economy. There are always of course shrewd people who buy up foreclosed property to resell it making a profit. This in no way provide help for the homeowner nor does it help the bank.
The lenders find that it is best to work out a plan that will work for the homeowner and for the bank in order to maintain both parties. The idea was to lower the interest rate and the monthly payment which would make it possible to keep the homeowner out of foreclosure. It was estimated that over a million letters was sent out to the homeowners but just a small amount responded to the lender. Now with foreclosures being halted for borrowers in distress it is hoped that this plan or one of another will be implemented to help save the homes for the homeowners from foreclosure.