Write Your Congressman (& Your Senator, too)

In the past those of you who follow this blog have heard me inform about programs to assist those who are unemployed manage to maintain their mortgages as current. HUD's Emergency Homeowners' Loan Program is the leading such national program. It is getting very close to its expiration deadline for applying. As of yesterday, the majority of its applicants have failed to qualify, based on the strictures established by the legislation. Over 200,000 applications have been downloaded from the web site, but many of those weren't ultimately filed, or do not qualify. The deadline fro application in most participating states was September 15, but in Pennsylvania, Connecticut, Delaware, Idaho, and Maryland, the expiration is on the 30th of this month. While the enabling legislation provided funds up to a total of $1 Billion, it now appears that a large portion of this will not be used.
Disturbed? Call, write, email your Congressman and/or Senators. Let them know and have them extend the program at least through the first of next year, if not longer. Don't wait--Do it NOW!! The home you save may be your own! Good Luck!

Take Action In Florida!

The state of Florida is one of twenty in the country that is a judicial foreclosure state. What that means is that before a foreclosure can be completed, it must go through the court system before it becomes final. Local legislators are taking a close look at changing this, removing this requirement. The reason: they feel that it's taking too long to foreclose and take away someone's home. While this argument may very well be legitimate in some cases, the judicial requirement is definitely helpful in saving the homes of some owners who, with time and assistance that could be provided by such things as loan mods, could avoid being foreclosed upon. If this applies to you, or if you think it may, get in touch with your legislators and tell them to leave the judicial requirement alone!
As always, Good luck.

Obama Calls for Help!

During his major Jobs address last evening, the President also took some time to pledge help to homeowners trying to stave off foreclosure of their homes. He pledged to assemble a refinance program that would allow suffering homeowners to refi their existing loans at today's lower rates. The specifics of such a plan have not yet been announced, but it is clear that any type of program along these lines would save hundreds of thousands of people's homes. It would cost the lending institutions money in terms of reduced interest income, but, since accounting rules require lenders to write off the entire principal amount when they foreclose, it would seem here that even a relatively small loss in expected income would be far better than a total actual loss on the value of the mortgages involved that would result from foreclosures. Suggestion at this point: Get on your Congressperson's bask, and your Senators' backs and push on this idea. It certainly is a good one, and could very well be second only in importance to reviving the economy to job creation.

Possibly Some Help for You in NY

The operative word here is "possibly". What has happened is that a pair of economists from the Federal Reserve Bank of New York have made the suggestion that states could possibly make 'bridge' loans to unemployed homeowners to help the owners cover their mortgage payments until they again are gainfully employed. The economists are modeling their suggestion on just such a plan that Pennsylvania has had up and running since 1982--long before the current crisis. Of the people who took advantage of this program over 80% have repaid the short term bridge loans they received. The Federal government did have a similar program earlier this year, EHLP, but even with two extensions for applications, it has now expired. A suggestion here might be in order--call, write, email or just visit your local state legislator and put the idea past him. It can't hurt and might be the one thing you do that provides enough breathing room to help you save your home from foreclosure.

Good luck.

Some More Help On The Way

This past Friday, HUD announced it is going to spend some more money on counselling to homeowners to assist them in avoiding foreclosure. A total of $10 million will be spread across the country to a variety of counseling firms and agencies to advise and help homeowners avoid foreclosure. The total breaks down to $3 Million going to 139 local counseling agencies, and the remaining $7 Million to 23 housing counseling intermediary agencies. The largest geographic concentration of these funds nationally will be to areas that are the more severely affected areas in terms of foreclosures. Some of the money will also be directed to agencies dedicated to exposing foreclosure "help" scams, including counseling on how to avoid being burned by such scams. If you have any questions, contact HUD immediately.
Good Luck.

Help From Obama

Reuters reports that the Obama administration is planning to release a new program next week that will help homeowners retain their homes and avoid foreclosure. Set to work with loans guaranteed by Freddie Mac and Fannie Mae, as well as loans by FHA, this will help those who are unemployed or underemployed avoid foreclosure by reducing interest rates or extending loan terms, thus making it easier for homeowners to make their payments and thus, keep their homes. Keep your eyes peeled for more info as it becomes available.
Have a happy Labor Day, and Good Luck.