Home Foreclosure News: Obama Admn Offers New Help for “Underwater” Homeowners

As we discussed in the last post on home foreclosures here, the Obama Administration’s prevent foreclosure program (HAMP) left a gaping hole — it didn’t address one of the largest problems many homeowners face — owing more on their home than it’s worth. This is known as being underwater.

According to recent statistics, some 11 million homeowners are underwater on their homes. This makes it practically impossible to refinance or modify their existing mortgages with traditional institutions like banks. Hence, the government intervention to help stem the tide of foreclosures.

Stopping Foreclosure: New Government Solutions to Help Underwater Homeowners

Now, the Obama Administration is trying to plug the “underwater” hole, offering up new fixes like:

Writing down principal balances to 115 percent of a home’s current value or less;

Offering forbearance periods for borrowers who become unemployed; and

Allowing owners to do short sales  and/or transferring ownership via the deed in lieu of foreclosure process.

Learn more in the article, Obama wields new tools to try, again, to stem home foreclosures.

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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.