The Obama administration has received a fair amount of criticism for failing to act fast enough to save millions of people from falling victim to foreclosure following the burst of the housing bubble.
But now, Miami foreclosure lawyers understand the president is putting pressure on Congress – specifically Republicans – to sign off on his legislative plan to provide a greater measure of relief to those families struggling to stay in their homes.
The president’s mortgage refinancing plan, which Congress has been sitting on since February, would give “responsible” homeowners the opportunity to save an estimated $3,000 annually by allowing them to refinance their loans at lower interest rates.
The president said this would create more jobs and accelerate the country’s economic recovery. Ultimately, the hope is that it would prevent more people from having to endure a foreclosure by allowing them to refinance their mortgage debts.
Millions of homeowners haven’t been able to emerge from their underwater mortgages, a problem stemming from the banks’ systematic over-inflation of housing prices prior to 2008.
The president’s Home Affordable Refinance Program plan would effectively triple the number of individuals who could claim eligibility for mortgage loan refinancing, according to statistics provided by the White House.
Obama derided Republican Presidential Candidate Mitt Romney, who has taken the stance that the market should be allowed to hit bottom and bounce back on its own.
“I don’t agree with that,” the president said.
Obama has been highly critical of Senate and House Republicans who have refused to approve the legislation, which he said would allow more people to stay in their homes and avoid bankruptcy, foreclosure and financial ruin.
Republicans, meanwhile, say the cost of the program, estimated at somewhere between $5 billion and $10 billion, does not justify the end result. Congress isn’t scheduled to meet again until after the elections in November, which could impact whether the measure receives favor.
This renewed effort by the president comes amid news that housing prices across the country are slowly inching upward. Standard & Poor’s reports there was a 1.2 percent increase in prices overall in July, compared to the previous year’s numbers.
Republicans are framing this measure as an unnecessary tax increase that would halt job development.
The president made his remarks in his weekly radio address. He admitted that the housing industry is likely years from recovery, but said Republican stall tactics aren’t helping matters.
While politicians play up the issue for votes on both sides of the aisle, countless homeowners are continuing to suffer, barely able to cover the costs of their monthly mortgage payments, to the detriment of other necessities.
There are currently some incentives available to banks that provide loan modifications for certain qualifying homeowners, but those haven’t been as widely-distributed as had previously been hoped.
That’s why homeowners seeking to avoid foreclosure through loan modification should seek the assistance of an experienced Miami foreclosure attorney. Negotiating with banks can be difficult, time-consuming, stressful and ultimately unsuccessful if not done properly.
Our experience is proven. We can help.
If you’re battling foreclosure in Miami or the surrounding areas contact Jacobs Legal for a confidential appointment to discuss your rights. Call (305) 358-7991. Also, don’t miss Miami Foreclosure Attorney Bruce Jacobs on 880AM/the Biz, every Tuesday from 6 p.m. to 7 p.m. on “Mortgage Wars,” discussing foreclosure topics that matter to YOU.
Obama urges Congress to pass mortgage plan, Sept. 29, 2012, Staff Report, Agence France-Presse
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Banks Battle Homeowners on Short Sales, Sept. 26, 2012, Miami Foreclosure Lawyer Blog