While many are scrambling to find a solution to the foreclosure crisis that has plagued the nation over the last few years, new evidence is coming to light about where some of the potential gaps in the system might be. Without forgetting the role stingy lenders have played in the mess, it has been discovered that some federal assistance programs are stocked full of funds that have been untapped to this point.
A $7.6 billion federal program designed to help unemployed homeowners avoid foreclosure was initiated just two short years ago. The Hardest Hit program and federal Troubled Asset Relief Program (TARP) were both designed to set aside money to specifically aid unemployed homeowners by helping them get caught up on missed payments, reduce mortgage balances and pursue other relief efforts. Since its unveiling, the program has paid out less than $218 million of the money to help struggling homeowners.
Despite the efforts of several programs many homeowners are still losing their homes or at great risk of losing them in the near future. Some have offered explanations as to why the program funds are sitting untouched including lack of consumer awareness of program existence and delayed government processing. Before the government shells out more money for foreclosure efforts one thing is clear, there is plenty of money out there for assisting homeowners and getting them in touch with these funds is of utmost importance.