Stopping Foreclosure: Obama Administration Considering Forcing Banks to Modify Home Loans – What It Means for The Average Homeowner

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!”

According to the Washington Post article, In foreclosure settlement, U.S. may force banks to meet loan-modification quotas, the Obama administration is considering a number of options that would, in essence, force banks to not only offer home loan modifications, but also reduce principal balances for homeowners who are underwater.

 

So, what exactly does this mean for the Average Joe who owns a home?

*************************************
Story Con’t Below: Get the Foreclosure Cleaning “Business in a Box” for 40% off.

*************************************

Keep Hope Alive: The Government Is Going to Bat for You (Maybe)

 

If you’ve been at your wit’s end trying to get a home loan modification, or get your principal reduced or even just trying to refinance, all is not lost. While the government’s prevent foreclosure program, HAMP, has not lived up to its original promise to help 3-4 million homeowners via one of these methods, it’s still a possibility.

 

The Obama administration now seems to be getting serious. And, an argument could be made that they’re even looking for creative ways to get what they want.

 

What do I mean?

 

Participation in Government’s Prevent Foreclosure Program, HAMP, No Longer Voluntary for Banks?

 

Well, participation in HAMP is voluntary. Now, the government is looking for ways to penalize company that REQUIRE them to if not participate directly in HAMP, at least do some of the things the program wants, ie, reduce principal balances, permanently modify more home loans, etc.

 

And, isn’t this what homeowners trying to prevent foreclosure have wanted all along? They just want mortgage lenders and servicers to play fair and give them a decent chance to save their home. And, even if you’re sitting there shaking your head going:

 

But why should the government force mortgage holders to help distressed homeowners? They signed the mortgage papers and if they can’t afford their home because they bought more house than they could afford or took out one of those “exotic mortgages and it’s now catching up with them, then too bad.

 

Why the Foreclosure Crisis Should Matter to All Homeowners, Not Just Those Facing Foreclosure

 

Well, let’s not forget that while some or all of the above may be true, when a homeowner is foreclosed on, it affects everyone in the vicinity’s property value. So, it behooves banks to work with homeowners to keep as many of them in the property who want to stay as possible – for the sake of their bottom line, as well as surrounding homeowners.

 

The foreclosure crisis really brings home the saying, “We’re all in this together,” no?

 

Related Posts

 

Home Foreclosure Crisis Deepens: 11 Million Homeowners at Risk of Losing Their Homes

 

Home Loan Modifications: 30% of Those Made in 2009 Were Seriously Delinquent or in Foreclosure Process — Lessons Learned?

 

Foreclosure Crisis to Drag on for Another 9 Years? 

 

Home Foreclosure News: 9 Million Homeowners Could Go Into Foreclosure Between 2009 & 2012

 

Home Loan Modifications: 30% of Those Made in 2009 Were Seriously Delinquent or in Foreclosure Process — Lessons Learned?

 

Stop Foreclosure Help: What Happens When You Stop Paying Your Mortgage

 

Stop Foreclosure: 1 Really Easy Thing You Can Do to Buy More Time to Save Your Home

Stop Foreclosure: The Secret Your Lender Won’t Tell You That Can Help Save Your Home

P.S.: Business Opportunity: Learn How to Start a Foreclosure Cleanup Business. Read how one foreclosure cleaning biz owner makes up to $40,000/wk.