Thursday, May 14, 2009
The Obama administration has announced more steps to help homeowners avoid 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 launching a $50 billion mortgage aid program in March, mortgage companies have made more than 55,000 offers to modify borrowers' loans.
Treasurey Secretary Timothy Geithner (GYT'-nur) says there are signs that homeowners are using the program to lower their monthly payments. But housing counselors across the country have complained that mortgage companies often are unaware of the plan or steer borrowers away from it.