The Obama Administration is trying to kick-start its help for homeowners program by offering debt forgiveness of up to 10 percent as part of a new incentive being unveiled this week, according to the Associated Press.
Those looking to stop foreclosure in Miami need access to an aggressive and experienced Miami-Dade foreclosure defense lawyer. We continue to report one program after another being rolled out in an attempt to assist unemployed or underwater homeowners in South Florida. In some cases, the programs are not worth the effort. In other cases, not everyone will qualify. In still others, having an experienced attorney can help make sure you are not leaving yourself at risk of a deficiency judgment or other penalty as the result of a short sale.
Beginning Tuesday, the Federal Housing Administration will permit lenders to issue loans backed by the government after forgiving at least 10 percent of the mortgage amount. Officials hope the program will induce lenders to lower mortgage balances for underwater homeowners — something banks have been reluctant to do — in exchange for a government guarantee that the bank will receive the remainder of the balance due.
Meanwhile, nearly half of the 1.3 million homeowners who have enrolled in the government’s main mortgage program have dropped out in the past year. The new program is being funded with $14 billion from the existing $75 billion mortgage assistance program.
To qualify, a borrower must be up-to-date on their mortgage payments (which automatically disqualifies many seeking help), and most owe at least 15 percent more on their home than it’s worth.
If you are facing foreclosure in the Miami area or are considering home-loan modification, short-sale, strategic default or other options in South Florida, contact Barakat, Jacobs & Associates for a confidential appointment to discuss your rights. Call (305) 350-5055.