Foreclosure Prevention Gets Easier

: Chris Lee Law Firm

  Filed under: Foreclosure

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ForeclosureOne of the biggest criticisms over the foreclosure crisis has been the inability for many homeowners to receive help when they applied for it long before their home ended up in foreclosure. Stubborn lending practices and under qualified borrowers clashed to create one of the biggest real estate disasters in history. Now, there are many state and federal efforts aimed at helping alleviate this gap and bring lenders together with homeowners to resolve mortgage debt troubles before they result in foreclosure.

Coming Together

One of the main efforts the government has initiated is the creation of the Making Home Affordable program, which includes several smaller programs aimed at helping homeowners secure loan modifications or refinancing offers. While these programs haven’t been as effective as originally designed, the government has since revised the programs and added lender incentives to boost the program’s effectiveness. Under the revised programs, homeowners who do not qualify under previous standards are becoming eligible for mortgage debt help.

Some states are also taking initiative to bring relief to residents. Florida’s Hardest Hit Program is a $1 billion foreclosure prevention program that loosens eligibility criteria and offers monetary incentives to some borrowers. Unemployed and underwater homeowners are two of the main targets for this state funded program, offering up to $24,00 in mortgage payment assistance. This program, along with the federal programs, have kept the foreclosure crisis to a manageable level and is giving the market a fair chance at recovery.

 

 

 


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