The Obama Administration is proposing a program that would pay some homeowners to sell at a loss, according to an article in the New York Times.
The announcement is the latest in a string of government and state programs designed to assist residents facing foreclosure. An experienced Miami foreclosure attorney can help you determine the program that is right for you and fight to keep you in your home.
This latest program, which will provide underwater homeowners with cash in an effort to induce them to sell for less, is the latest attempt to deal with the estimated 5 million households who are behind in their mortgage and in danger of foreclosure. South Florida is among the hardest hit areas in the nation.
The government’s $75 million mortgage modification plan is another program available to Miami homeowners, though it has helped just a small percentage of eligible homeowners.
An estimated 1 in 6 U.S. borrowers owe more on their home than it is worth after the nation’s real estate bust erased more than $3.3 trillion in home equity during 2008, according to the real estate site Zillow.
The new program takes effect April 5 and will encourage hundreds of thousands of borrowers to sell their homes through short sales, a process where the bank permits a house to be sold for less than the amount owed.
If you have are facing foreclosure in the Miami area, contact Barakat, Jacobs & Associates for a confidential appointment to discuss your rights. Call (305) 350-5055.