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A Helping Hand To Unemployed Homeowners

Helping HandWhile the recent Banking Reform Bill was touted as a means to prevent future financial crises, a little-known amendment offers a helping hand to unemployed homeowners. With HAMP and other foreclosure relief efforts intended to help working homeowners, they offered little to the millions of unemployed who fail to qualify for a loan modification.

 

The new program will be administered by HUD, the Department of Housing and Urban Development; and while the details are yet to be announced, the bill includes as much as $1 billion to be used to help those without jobs make their monthly mortgage payments. And with unemployment remaining abnormally high, the funds will provide a “safety-net” to many homeowners who might otherwise be forced into foreclosure.

 

The current recession has been exceedingly difficult for millions across the country, and there are many who legitimately need the assistance offered. However, $1 billion isn’t much when spread across the millions of unemployed. I would hope that HUD does an effective job of distributing the funds and insures that money not go to dead people, those in prison, or those who do not own homes, as was recently the case with the Housing Tax Credit.

 

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Comment balloon 12 commentsJohn Mulkey • July 24 2010 04:17PM

Comments

Or, that ACORN isn't reserected to administer the program.  Like so many government programs, those that qualify are usually limited to low and low/moderate income families. 

There are many middle class home owners who would benefit but are over an arbitrary income limit.

 

 

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) over 8 years ago

I actually know of some homeowners that have had their mortgage loans modified & were able to keep their homes.  But of course, if the homeowner is unemployed, they probably woudn't qualify. Hopefully this new program will help these homeowners keep their homes.

Posted by Amanda Nicodemus, Spring Texas Real Estate www.amandahomes.com (Spring Texas Keller Williams Professionals - Cypresswood) over 8 years ago

HUD has to do a better job of administration of the program.  The big question is what is going to happen when the money runs out and people are still not employed?  More foreclosures?

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) over 8 years ago

You may hope on, my friend.

Posted by Jay Markanich, Home Inspector - servicing all Northern Virginia (Jay Markanich Real Estate Inspections, LLC) over 8 years ago

It seems to be catch 22 with these programs. They sound good, but how many legitimate homeowners do they help?

Posted by Ellie McIntire, Luxury service in Howard County & Catonsville (Ellicott City Clarksville Howard County Maryland Real Estate) over 8 years ago

Lenn - It will be interesting to see how the program unfolds; but based on the govt's past performance, I'm skeptical.

Amanda - I hope the money reaches those who actually need and deserve the help.

Don - It's just another stop-gap program that may provide some temporary relief.

Jay - We still have hope and change, dont' we?

Ellie - That's the BIG question.  We'll see.

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 8 years ago

Is this program good for the long haul.  Government has all kinds of stop gaps for home owners, maybe they should use that money to employ people around the country.  Years ago, they helping hand came in the form of a job.  Look how much was done for the country.  Parks were made, roads and dams built just to name a few.

People learned new trades and were able to help themselves.  It worked then...why not try it now?

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) over 8 years ago

William - I would like to see a significant effort to rebuilding our crumbling infrastructure.  That would both create jobs and have a long-term benefit.

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 8 years ago

John,

What IS the answer to get government programs administered properly?

Posted by Terry Chenier (Homelife Glenayre Realty) over 8 years ago

Terry - The bureaucracy is so big it's practically impossible.  If we could get term-limited politicians to begin to create intense oversight of each program--one by one--it might happen in a decade or two, but I can't imagine that happening.  Ultimately, the bureaucracy just grows larger and more inefficient, and the pain continues.

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 8 years ago

John,

Hopefully HUD will effectively administer this new "safety net" program because scammers will be sniffing around it soon.

Posted by Esko Kiuru over 8 years ago

Esko - I suspect the "scammers" are already working on it.

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 8 years ago

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