More homes seized in February
It appears President Barack Obama’s foreclosure prevention plan came too late for some. Foreclosures in February this year were 30 percent higher than last year. A total of 290,631 homes received a default or auction notice, and that includes 161,976 households that were notified for the first time, according to RealtyTrac.
Loan modification
Obama’s foreclosure prevention plan became effective March 4. Since then, home owners in danger of foreclosure can file for loan modification. In addition, homeowners who have loans through tax-payer owned Fannie Mae and Freddie Mac can file for refinancing. Fannie and Freddie customers can qualify for refinancing even if they don’t have delinquent payments, but they must show proof of hardship.
Too late for some
Unfortunately, the government aid couldn’t help people whose homes were seized in February. People who got notices that they had defaulted on their personal loans might still have time to apply for the program. If you think you might be eligible for the program, you can get professional loan modification help here.
Big lenders held off on foreclosures
The high number of foreclosures in February is particularly surprising because several companies placed moratoriums on foreclosures that month. Six of the nation’s largest mortgage holders stopped foreclosure proceedings throughout the last half of February. Those companies were: Citigroup, Countrywide, Bank of America, JPMorgan Chase, Washington Mutual and Wells Fargo.
Not so hopeful
Economists say the effort to fix the housing crisis may not be too effective because it can’t fix the still weakening economy.
“More people have lost their incomes or are underwater on their mortgages, so a new housing plan won’t change those facts by itself,” Barry Eichengreen, professor of economics at the University of California, Berkeley, said in an interview.
Indeed, another news report today shows that U.S. household net worth dropped a record amount during the last quarter of 2008.
Time will tell, think positive.