Obama administration revises anti-foreclosure strategy

Real Estate Agent with HomeSmart Realty West BRE #01786169

The Obama administration’s newest foreclosure-prevention efforts, expands on the government's marquee foreclosure prevention program, Making Home Affordable. That program was originally expected to reach as many as 4 million borrowers, but it is not on track to help so many.

To reach its goal, the administration is adding tools to help lenders reach struggling borrowers who have lost their jobs or who are "underwater" because home values have plunged and they now owe more than their homes are worth.

 Administration officials said the new efforts are not designed to help all troubled borrowers, but rather those who stand the best chance of recovering. That approach, they said, should help further stabilize the housing market and the economy at large.

"We're not going to stop every foreclosure. It wouldn't be fair. It would be too expensive, and it probably wouldn't succeed anyway," said Diana Ferrell, deputy director of the National Economic Council, which advises the president.

The administration's plan, to be implemented over several months, requires lenders to slash jobless borrowers' payments for three to six months, adopting a strategy used by the industry and applying it more broadly.

Comments (4)

Dottie Lay
Davidson Realty Inc. - Saint Augustine, FL

Great Information. Thanks for sharing!

Mar 29, 2010 01:59 AM
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

Rob, it will be interesting to see if this one works any better than the other one.

Mar 29, 2010 02:01 AM
Scott Baker
www.eHomeReports.com Coldwell Banker Realty - Liberty Township, OH
Realtor Homes for Sale Cincinnati/Dayton Ohio

JOBS will help prevent foreclosures better than any government program. Some foreclosures will happen regardless of the economic climate. That being said, the best way to help consumers is a vibrant economy.

Thank you

Mar 29, 2010 02:06 AM
Dinah Stallworth-Lewis
Priority Real Estate LLC - 318.332.8281 - Natchitoches, LA

thanks for the update

Mar 29, 2010 02:12 AM

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