MSNBC reports Plan Launched to assist Underwater Borrowers

Federal assistance for homeowners in trouble on their mortgage

By ALAN ZIBEL

WASHINGTON — The Obama administration is trying to jump-start its sputtering attempts to tackle the foreclosure crisis with an effort to assist homeowners who owe more on their properties than their homes are worth.

Starting Tuesday, the Federal Housing Administration will permit lenders to give these borrowers refinanced loans backed by the government. The lenders will be required to forgive at least 10 percent of the original mortgage amount. Investors who have control over the mortgages as part of their large portfolios will select which borrowers are invited to participate.
The plan was first announced in March. Its rollout represents the latest of numerous efforts by the administration to address the housing bust. So far, the government has only nibbled around the edges of the crisis, as its programs have run into numerous problems.
The lending industry was ill-prepared for a crush of distressed homeowners, the economy worsened and millions of homeowners had taken on so much debt that their financial woes have been nearly impossible to resolve.
Nearly half of the 1.3 million homeowners who have enrolled in the Obama administration's main mortgage-relief program — overseen by the Treasury Department — have already fallen out over the past year.CLICK HERE FOR FULL ARTICLE

NBC Washington Reports: More Help For Homeowners in Trouble

Homeowners Hope for Mortgage Help

Thousands of struggling homeowners, hoping to get a break on their mortgage payments, started lining up outside the Washington Convention Center early Friday morning.

They were waiting for the start of the Save The Dream tour. The Neighborhood Assistance Corporation of America has brought together lenders, financial counselors and homeowners in danger of losing their houses.
Over the next week, many homeowners will be able to negotiate lower interest rates. Some may also be able to lower the principal on their homes.Click Here for Full Article

Nytimes Reports: Astonishing Correlation Between Mortgage Default & Borrowers Being Bad At Math

Study Says Math Deficiencies Increase Foreclosure Risk

By BOB TEDESCHI

IF you can’t divide 300 by 2, should you qualify for a loan?
That is one of the questions raised by a new study led by a Columbia University assistant business professor, Stephan Meier, who found that borrowers with poor math skills were three times more likely than others to go into foreclosure. Click Here for Full Article

Forbes Online Discusses Loan Modification

Forbes magazine online loan modifcation advice

Foreclosures and problem loans have thrown millions of American households into crisis. Over 7.5 million mortgages are delinquent, and an estimated 1 million have been taken back by the banks, according to Lender Processing Services, a Jacksonville-Fla.- based mortgage-industry service provider.
In response, the government founded the Making Home Affordable program, with $75 billion in federal funds, to offer services--including loan modification--to certain homeowners. But navigating the thicket of paperwork and separating good from bad advice can prove downright daunting. And for some struggling homeowners loan modification may not even be the right option.(Click HERE for full article)

U.S. Plans Big Expansion in Effort to Aid Homeowners

New York Times Reports:

The Obama administration on Friday will announce broad new initiatives to help troubled homeowners, potentially refinancing several million of them into fresh government-backed mortgages with lower payments.

Click HERE for Full article on Nytimes.com