The Federal Housing Administration submitted allowed Forbearance Bill and has just been signed by President Obama. As of August 1, 2011 the new regulations allow unemployed homeowners to remain in their homes without fear of foreclosure for up to one year. 
Now, is there any question that our economy is in big trouble? Of course with the glut of homes being dumped into our banking systems something has to give! This is good to hear for many homeowners although there are strict regulations on this new development. All loans must be FHA backed.
I guess that's the good news. But, the bad news takes precedence. The bad news is that this bill is going to help fewer people than we realize. Many of the FHA loans handled by Wells Fargo & Co., Bank of America and JPMorgan Chase & Co are being denied. Many homeowners that qualify for the program are being denied due to the banks not being able to place their hands on the paperwork so their answer is a resounding "no" and the banks excuse is that the homeowners will not turn in the necessary requested documents! President Obama blamed the banks for not allowing the program to work.
Here's my question. If the bank can't produce the documents on the loan is there really a loan to pay back? And, why would it be the homeowner's responsibility to show proof there is money owed?
Through the bureaucratic red tape, little is being done. The program sounds wonderful and I think we should all be able to take advantage of it. House payments can be delayed up to 1 year with interest owed on the unpaid balance of course, and the revamped loan will be written up for as little as 2% interest for 5 years.
Our administration requested Fannie Mae and Freddie Mac to adopt the same sort of program for the masses as they hold 90% of all mortgages and again we got the answer "no". My opinion is that since they are Government held entities they answered with the right answer for our Administration....I had to slide an opinion in here.
If you know of anyone that fits the bill and needs the assistance have them contact their FHA backed Lender and wish them luck. It's not going to be easy. But, then again, what is these days?
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