In July of 2008 President Bush signed the Hope for Homeowners Act to try to prevent about 400,000 homes from foreclosure. Recently we found out that only ONE home was actually saved with this program! Understandably the program did not work because it did not give any incentives for banks to modify mortgages.
The new administration has been determined to thwart the foreclosure rate since before election day. In a previous post I discussed the plans for government assistance. The $700 billion recovery package set aside $75 billion for this cause and will finally offer some opportunities for those in distress. Last week the President took the next step and named the first six companies who will receive part of this money. Chase, Wells Fargo, GMAC, CitiMortgage, Select Portfolio Servicing, and Saxon Mortgage will receive up to $10 billion of the $75 billion available. The plan is to help about 9 million homeowners who may be near foreclosure.
With this kind of money in the hands of these large financial institutions, they are going to be willing to help this time around. However, homeowners have to seek out the assistance and have the desire to save their homes. I have spoken with so many who are just ready to give up and feel walking away is easier. That is the easier way out; but not the best way or the smartest way. There are options when you are in distress and there are people out there willing to help. See if you qualify for a loan modification or refinancing today.
- Check out another way to help if you are in a distressed situation.