Stopping Foreclosure: Obama Administration to Launch 2 New Programs to Help Homeowners Avoid Foreclosure (One is for Unemployed Homeowners)

With unemployment still north of 9% (in some cities it’s in double digits), the housing market is struggling. Foreclosures continue to mount as the job market and housing markets are interlinked, ie, without a job, homeowners can’t afford to pay the mortgage.

The Obama administration announced recently that it would launch two new programs aimed at helping homeowners stop foreclosure. One is a refinance program to help underwater homeowners; the other is aimed at helping those who have lost their jobs. Details will be forthcoming in a few weeks, but here’s what we know now:

. . . FHA refinancing program to help borrowers whose mortgages exceed the market value of their homes. He also said the department will launch “an emergency homeowners loan program” to help people who are unemployed keep their homes. {Source: Atlanta Journal Constitution, 2 new programs planned to help homeowners.}

Fingers crossed that these programs fare better than HAMP.

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