Bill Morris: Expanded mortgage relief program

Expanded mortgage relief program

The Austin American-Statesman included this article this morning detailing the new, expanded mortgage relief program:

U.S. revamps program to aid those in mortgage trouble

Approximately 6 million homeowners nationwide have missed at least two mortgage payments, and as many as 10 to 12 million foreclosures are possible in the next three years.  Under the mortgage aid program that has been in effect for the past year, only 170,000 have successfully completed mortgage modifications.  A large percentage of homeowners who began that process defaulted again, sometimes missing the first payment on their newly modified mortgage loans.

Of course, I hope as many homeowners as possible can find ways to keep their homes, and a flood of heavily discounted foreclosures will drive property values down.  However, I am concerned that this program may have the unintended effect of making this recovery process take longer than it would if we just let the market correct itself.   Will a smaller flood over a longer time be better, or worse?  Time will tell.

Bill F. Morris, ABR, CRS, CDPE, e-PRO, MBA
RE/MAX Capital City
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Comment balloon 2 commentsBill Morris • March 27 2010 09:27PM

Comments

The new program will try to reduce principal balances for upside down homeowners.  It'll be another fiasco with our government and banks pointing fingers at each other.

Posted by Loan Survivor Real Estate Financing Expert (Purchases, First Time Buyers, Pre-Approvals, Refinance) over 9 years ago

Consumers are so confused these days. . . they are in limbo

Posted by Fernando Herboso - Broker for Maxus Realty Group, 301-246-0001 Serving Maryland, DC and Northern VA (Maxus Realty Group - Broker 301-246-0001) over 9 years ago

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