Obama administration to expand housing plan

[babylonsister]

Obama administration to expand housing plan

By ALAN ZIBEL, AP Real Estate Writer
Thu May 14, 11:20 am ET


WASHINGTON – The Obama administration expanded its $50 billion mortgage aid program on Thursday, announcing new measures that would help homeowners avoid a foreclosure if they don't qualify for other assistance.

The new initiatives are expected to streamline the process of selling a home that is worth less than the mortgage, or transfer ownership of a home to the lender. Both options will still ding the homeowner's credit score, but less than a foreclosure.

Since the program, called Making Home Affordable, was launched in March, Mortgage companies have made more than 55,000 offers to modify borrowers' loans.

"We're seeing the first signs of homeowners being able to take advantage of lower monthly payments that the program makes possible," said Treasury Secretary Timothy Geithner.

While the number of success stories is growing, it pales compared to the rate of new foreclosures, and many housing counselors across the country are complaining that the Making Home Affordable is taking off slowly.

"Our experience at the ground level has been, so far, frustrating," said Michael van Zalingen, director of homeownership at Neighborhood Housing Services of Chicago, a counseling group. Entry-level employees at mortgage companies, he said, are either steering borrowers away from the plan or are entirely unaware of it.

There are, of course, lucky homeowners like Daniel Iturriaga, 45, a warehouse worker from Compton, Calif. Working with a counselor from Springboard, a nonprofit counseling group, Iturriaga was able to get JPMorgan Chase & Co. and mortgage finance company Fannie Mae to modify his home loan.

He's going from a monthly payment of about $2,300 to about $1,275. After a three-month trial period, it should be final in mid-June.

"It's a long process, but I still have a little hope to stay in my home" said Iturriaga, who bought his home for about $400,000 in 2005 and has seen houses on the same block sell for about half as much. "I'm pretty happy."

more...

http://news.yahoo.com/s/ap/20090514/ap_on_go_pr_wh/us_obama_housing;_ylt=AnrM9rJULvZWxDKk5U_9CCes0NUE;_ylu=X3oDMTJoOGptdm8wBGFzc2V0A2FwLzIwMDkwNTE0L3VzX29iYW1hX2hvdXNpbmcEY3BvcwMzBHBvcwM4BHNlYwN5bl90b3Bfc3RvcnkEc2xrA29iYW1hYWRtaW5pcw--

[vaberella]

1. I'll be the first to give this thread love.

Wow...Thanks President for caring about the American people. I'm happy for Mr. Iturriaga...that's almost $900 off his mortgage. Just that little help in the long run saves so much. That's $900 more he can spend on other things. He should think about medicaid for the time being..that might be helpful too.

[Hippo_Tron]

2. Massive foreclosures aren't good for anyone

The bank isn't going to be able to sell those houses in this economy.

[BlooInBloo]

8. Sure they can. They just sell them for less than the original note.

[Hippo_Tron]

9. In some cases they can

But in a lot of cases the bank is just sitting on those properties because they can't sell them for any reasonable amount of money.

[JimGinPA]

3. K&R

[Forkboy]

4. Good job, Sir.

:thumbsup:

Now, about the multi year waiting list for Section 8/public housing needs.... (I know I know...I'm never satisfied. ;) )

[babylonsister]

5. Ha!

:spank:

[Forkboy]

6. hehe...to be fair, I'm not sure what he can do.

But there are states where the waiting list for housing is literally 5+ years, and some states that aren't even accepting new applicants. Something needs to be done, I just don't know what. x(

[cooolandrew]

7. Sounds like an awareness plan needed. If it helps more folks need to hear about it.

[jbauer_torture]

10. no

MORE CORPATIST

[Cha]

11. Gotta learn to

spell, jack.

[bigwillq]

12. Good.

:thumbsup: