Quarter in U.S. Foreclosure Plan Late on Payments
Friday, December 11th, 2009
http://www.reuters.com/article/idUSTRE5B41ME20091205
More than one-quarter of homeowners receiving help under a U.S. government foreclosure prevention plan are behind on their new mortgage payments, a Treasury Department survey has found.
U.S. | Housing Market
Some 650,000 borrowers are participating in the trial phase of the Obama administration’s Home Affordable Modification Program, a $75 billion taxpayer-financed program launched this year.
Most home loan modifications result in lower monthly payments, although some lead to reduced principal on mortgages.
Trial modifications were initially for three months, but the Treasury added 60 days, effectively making them last five months.
Homeowners must submit more detailed documentation before they can have their loan modifications made permanent.
A Treasury Department survey of large mortgage servicers found “over 73 percent of borrowers are current in their trial plan payments,” Assistant Treasury Secretary Herbert Allison told a congressional oversight panel.
That leaves about 27 percent who are delinquent on the payments.
Allison provided written answers to questions raised at an October hearing before the Congressional Oversight Panel, which monitors the government’s foreclosure prevention plan and other financial rescue efforts.
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http://www.u1stfinancial.net/aaronremer
From KETC, LIVING ST. LOUIS Producer Anne-Marie Berger visits the United Way’s 2-1-1 information and referral helpline. Designed to provide help to people looking for access to resources on topics such as food pantry referrals, utility bill questions, employment assistance and mortgage problems, the call center is staffed by trained operators who refer calls to the resources available closest to where the caller lives. The call center is also available by calling 1-800-427-4626.
http://www.WorldWideWeller.com/ufirst
Is there cash help available? Some organization may have small sums that can help a homeowner fight foreclosure, but that money will only be made available to homeowners who are willing to face the underlying situations that have brought them to that point and can demonstrate that they are willing to take the steps necessary to avoid problems in the future. There are not free handouts. In the Greater St. Louis area, you can call the United Way’s helpline at 1-800-427-4626 or 2-1-1 for information about trusted community resources you can turn to.
Can I get help before I buy a home? Many of the same organizations that can help you if you are facing foreclosure also offer pre-purchase counseling to homebuyers. If you don’t understand the documents you are being asked to sign, seek help. In the Greater St. Louis area, you can call the United Way’s helpline at 1-800-427-4626 or 2-1-1 for information about trusted community resources you can turn to.