Even before the Government Accountability Office released a report indicating that the Obama administration may have overstated its achievements in curbing foreclosure va and other foreclosures through its Home Affordable Modification Program, several senators have already introduced new proposals to help step up the loan modification program and to help American homeowners keep their homes.
Before the release GAO report, the senators already knew that the federal program to reduce foreclosure va and other foreclosures has not been working out for many distressed Americans because of the volume of complaints they are receiving from their constituents and the continued rise in foreclosure filings.
In a recent report on foreclosure filings, nearly 1.5 million homes were hit with default notices and foreclosure notices in the first half of 2009.
Since the launching of the Making Home Affordable Program, only around 160,000 homeowners have been helped by the program, and these homeowners are still on a three-month trial period.
To respond to the pressure for deeper intervention by the federal government, the Departments of the Treasury and the Housing and Urban Development have called on mortgage lenders to step up their loan modifications. Treasury Secretary Timothy Geithner even wrote to the chief executives of the country’s 25 largest lenders and urged them to devote more resources to their loan modification programs.
But the senators want more, and they want bolder actions.
Senator Dick Durbin wanted to revive the judicial mortgage modification bill which he introduced and which was rejected by the Senate last April. This bill would allow bankruptcy judges to order lenders to reduce borrowers’ monthly loan payments through loan modifications. Durbin reiterated that the cash incentives were not enough to encourage lenders to modify loans.
Senator Sheldon Whitehouse of Rhode Island has expressed support for the revival of the bill. He said lawmakers need to re-examine the bill because of its potential to help more than 1.8 million American families save their homes from becoming foreclosure homes or foreclosure va homes.
Another lawmaker, Senator Chuck Schumer, supported the proposal of allowing homeowners to stay in their foreclosure houses or foreclosure va homes for a number of years as renters while they save for their future home ownership options.
This proposed rental scheme would solve other problems aside from containing foreclosure va homes and other types foreclosures. It would help neighborhoods prevent blight arising from vacant homes and would give lenders additional incentives to modify loans.
Related Posts:
- Senators Urge Geithner to do More for Foreclosed Housing
- Nevada Cuts Down Foreclosure VA and Other Foreclosure Homes
- Goal to Reduce Foreclosed Homes Listings Could Fall Short
- Programs to Help Stem Lists of Bank Foreclosures
- Modification Help Trim Down Foreclosure Home Listing
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