President Obama is looking for new ways to help unemployed homeowners and those who have underwater mortgages in the five states with some of the highest foreclosure rates in the nation. The states of Nevada, California, Arizona, Michigan, and Florida were hit hard by the housing crisis and recession, but according to an article on cnnmoney.com, there may be help on the way.
There is an initiative by President Obama to give monetary aid to the state housing agencies of these states that are seeing the worst of the housing troubles that have caused problems for millions of Americans. One way in which this new initiative is supposed to help is to provide assistance to homeowners trying to obtain a home loan modification.
However, these housing agencies are to be charged with finding new solutions as well, mainly for homeowners that are suffering from unemployment or who are dealing with an underwater mortgage. This money given to these institutions is hoped to provide other options or help in the modification program, which has had trouble with lenders.
This new initiative is expected to aid homeowners in various ways and provide incentives for those who are dealing with underwater mortgages to stay with their home and not simply walk away.
The $1.5 billion aid program is hoped to solve more problems that have not been addressed by the Making Home Affordable Modification program. Thus far, the program is quite new, but has already been met with mixed results ranging from those who believe addressing unemployment and underwater mortgages is a necessity to aid the recovery of the housing market and opponents who say the new initiative still isn’t enough.
