HOME FORECLOSURES

As of March, 2009 home foreclosures are decreasing thanks to a federal program. The goal of President Obama is to make homes affordable. The economy has played a major role in more then 5 million homes facing foreclosure.

This program offers $75 million to assist these families through a loan modification process. In order to qualify, the family has to be able to show they do live at that residence. They also have to show that there is a hardship preventing them from making their payments.

Those facing home foreclosures could provide proof of income to show what percentage of it goes for their mortgage payment. In spite of the efforts here though to help ease the burden, many say it isn’t a solution but a temporary fix for a larger problem. While they idea is good, the overall design of the program is continually criticized.

In the past, a homeowner was able to refinance with ease when they needed money. Today, lenders are less likely to be doing that. The prices of homes also continues to drop so many households have very little equity in their home that they can pursue through refinancing. Another problem is that banks are very nervous about the program. As a result they aren’t lending money to those that do qualify for the program.

However, the good news is that less people are losing their homes due to foreclosure. The goal of this prevention program is to make sure home foreclosures occur less often. Homeowners that are struggling to pay their loan need to start looking into what the program offered. More than 3 million homeowners have been approved for the modification program.

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