Issues
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Homeowner Assistance As you may know, the downturn in the housing industry appears to be weighing heavily on our economy. Millions of mortgages are spiking from their introductory "teaser" rates to rates less appealing, which has led to widespread foreclosures. Unfortunately, the homeowner is not the only person affected when they lose their house to foreclosure. In communities with high foreclosure rates, the crime rate frequently goes up, tax revenues generated by local governments decline, and the neighboring property values decrease. The lenders and investors also suffer. When a house moves into foreclosure, they often lose a significant portion of their investment. For instance, investors typically lose 30% to 50% of the unpaid mortgage balance when a home has to be resold due to foreclosure. Because a wave of foreclosures would impact people across the spectrum, it is in the best interest of everyone involved to work toward preventing such an occurrence. Last August, the Hope Now Alliance was established to help struggling homeowners avoid foreclosure. This program is bringing together private companies involved in the current mortgage turmoil to develop a solution that does not reward risky behavior but has the ability to slow down the number of foreclosures. To date, over 2.3 million loans have been restructured through the Hope Now Alliance. These workouts allow the borrowers to stay in the home and help ease the burden these pending foreclosures have had on our capital markets. Additionally, earlier this year six of the largest mortgage servicers in the United States announced Project Lifeline, a targeted outreach to homeowners' 90-days or more delinquent that may lead to a pause in the foreclosure process. This voluntary initiative is intended to reach not only subprime borrowers, but all 90-day delinquent homeowners nationwide with a step-by-step approach to find individual solutions to individual problems. While these agreements are a step in the right direction, communication is essential. If you are facing a potential foreclosure, it is important to learn about all of the options that are available to you. By calling 888-995-HOPE, you can receive free confidential counseling about your particular housing concerns from a professional. This 24-hour hotline can provide you with information about Hope Now, Project Lifeline and other available options. Additionally, the U.S. Department of Housing and Urban Development (HUD) has several programs designed to promote homeownership and avoid foreclosures. HUD recently unveiled the HOPE for Homeowners program that will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD's Federal Housing Administration (FHA). The program begins October 1, 2008 and ends September 30, 2011. You can reach HUD to get more information on their homeowner assistance programs by visiting their website at www.hud.gov or by calling 800-569-4287. Related Documents:
Speeches and Statements
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Royce Discusses Bailout Vote
10.3.2008
Related Files:
FS fannie and freddie
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