20 Jul New Break for Unemployed Homeowners
As of August 1, the Federal Housing Administration will extend the period for unemployed homeowners to miss mortgage payments to a full year instead of three months. You read that right. That means homeowners can go a full 12 months without making a monthly payment before the foreclosure process starts.
This will only apply to FHA-backed loans, which represents about 14 percent of all current mortgages. The government does hope that Fannie and Freddie, and perhaps even private lenders will also adopt this new policy.
The initial foreclosure program was launched in 2009 to help those at risk of foreclosure by lowering their monthly payments on a trial basis, but creating permanent loan modifications has not been very successful to date.
Recently, President Obama tweeted that the housing market has “been most stubborn to us trying to solve the problem,” admitting, too, that the government’s programs to aid homeowners hasn’t been enough to help the economy.
According to msnbc.com, the failures of the foreclosure assistance program has been blamed on the three largest U.S. mortgage lenders for incorrectly determining many applicants ineligible for assistance.
Do you think the FHA’s new 12-month delay program will make the difference needed in our housing market? What would you have done differently if you were in charge? Let us know by commenting below!