CNN reported today that the administration's foreclosure prevention plan which was launched in April 2009 has had minimal impact. The report noted that only 5% of trial modifications on loans owned or guaranteed by Freddie Mac were converted to long-term adjustments. In common language, this means that a low percent of homeowners who are over burdened by high mortgage payments have been able to work with their financial institutions to adjust their monthly payments and prevent foreclosure.
From the looks of it, the problem has been the difficulty for the consumers to connect with the right organizations. When a homeowner is behind in their payments, they will usually delay talking with anybody especially their banks or financial institutions- the ones they owe money to.
I can't tell you how often I have talked with homeowners regarding their housing dilemma and at the point of their crisis, they feel very helpless. It may seem hard to reach out for help. Also, the massive amount of paperwork required to qualify for this program may deter homeowners. Finally, there are numerous organizations out there that have been profiting from these homeowners and we should all beware of them.
If you or someone you know is in a precarious housing situation, I suggest that they get to know this federal program. The Federal Treasury has a concise (although a bit tedious) description of the program. The most current information on this program is available at the government website: www.makinghousingaffordable.gov. To get one-on-one help, contact a housing counselor a the Department of Housing and Urban Development (HUD) at 1-888-995-HOPE (4673).
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