The housing market has been slowly recovering for most of the year, but the fact remains that millions of Americans are still underwater when it comes to what they owe on their mortgage versus the value of their home. As such, many may be looking for some relief, and scammers are now preying on that… Read More
If you’re a homeowner who is struggling to keep up with a mortgage you can’t afford, or wondering whether to continue to stay and pay on a home that is deeply underwater, you may have seen another glimmer of hope in yesterday’s news about more proposals to address the housing crisis. Early Wednesday, preliminary details… Read More
In this series, I detail six possible ways to deal with an “underwater” home—one that’s worth less than the amount of money owed on it. Here is part three of my six-part series. When Javier Gonzales first started falling behind, he doggedly pursued a loan modification. He had both a first and second mortgage with… Read More
We’ve run several stories (including this one and that one) about how the federal government’s program to help people avoid foreclosure is an abject failure. Regardless, some people have still managed to get help and keep their homes. Fannie Mae and Freddie Mac, the two taxpayer-owned mortgage giants, helped over a million people refinance their… Read More
Over one million homes were foreclosed upon last year, and an estimated 8-10 million homes still face foreclosure. As things stand now, homeowners who try to work with their lenders to modify their loans will often find themselves facing a nightmare of lost paperwork, conflicting advice, and delays that ultimately cost them their homes. U.S…. Read More
Talking on the phone recently, Bevin Beckage read the bank’s letter again and laughed. Denied a modification of her mortgage after nine months spent correcting Wells Fargo’s mistakes. Denied even though the bank still can’t get its own paperwork right. Denied, even though it was a Wells Fargo employee who suggested Beckage apply for a… Read More
In news released yesterday, Treasury Department officials are having serious discussions with loan servicers – otherwise known as lenders – to ramp up loan modification activity. The goals of the drive to achieve stability in the housing market were substantial: a target of between 3 and 4 million homeowners currently at risk of foreclosure. They were supposed to be helped by the Home Affordable Modification Program.
We can easily get used to things like Cash for Clunkers without realizing that they were temporary programs. As was well publicized, that particular auto program used up its allocated funds quickly and was terminated. So what about housing?
Since mid-2008, a number of new laws were passed to help boost the housing market. Some aspects of the programs have been notable failures — features like trying to get lenders to modify loans that are in danger of foreclosure. Not much has happened on that front, but other parts have been more successful.