Obama Administration Aims to Provide Foreclosure Prevention for Struggling Homeowners

The Obama administration has launched a new set of initiatives to help struggling homeowners keep their homes and avoid bankruptcy. If successful, more homeowners would be able to stay in their homes, property values would stabilize and the country’s deepening foreclosure crisis would bottom out. The administration’s first efforts, launched last year, lowered interest rates in order to reduce monthly payments, but did little to address the fact that moderately lower monthly payments offer little assistance for borrowers who have lost their jobs. Critics also said that the Obama administration’s initial efforts offered little or nothing for homeowners who are underwater on their mortgages and lack the ability or inclination to keep paying mortgages that exceed the plummeting value of their homes. In addition, critics stated that participation in the original plan was mostly voluntary with some incentives offered to lenders to join, but lenders were not compelled to work with homeowners. The new plan includes the following:

  • Assistance for borrowers who are underwater and/or unemployed
  • If the borrower has no job, participating lenders will be required to help in some cases
  • Borrowers who are receiving unemployment benefits will have their payments lowered to no more than 31 percent of their income, and lenders will be required to participate
  • Any unpaid amounts will be added to the loan’s principal and will be repaid later
  • Other measures

If you’re struggling to find the right Louisville homes for sale or Louisville real estate agent, call Louisville Properties today at 502.744.9504. No one has a better selection of residential and commercial Louisville real estate, and if you’re selling your home in the Louisville area, money-saving flat-fee brokerage services are offered. To speak with an experienced Louisville real estate agent, call 502.744.9504 today. Resource Link: http://www.nytimes.com/2010/04/05/opinion/05mon1.html?th&emc=th

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James Powell

Jim Powell has over 20 years of experience buying and selling luxury real estate in Louisville, KY and Managing over hundreds or rental properties across the city.
Jim Powell (License #191501)

Lauren Ghanavatian

Lauren Ghanavatian attended Assumption High School and the University of Louisville. Growing up in Louisville gave her a sense of the unique and diverse communities this city has to offer.

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Louisville Properties is a full service Louisville Real Estate Company for buyers and sellers of real estate. We offer the following services
3418 Frankfort Ave #100 Louisville, KY 40207 Louisville, KY 40207
United States
Phone: 1-502-744-9504

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