The government and mortgage industry are launching a new program effective December 15, 2008 to help homeowners' stay in their homes by renegotiating delinquent loans held by Freddie Mac and Fannie Mae. Almost 1 out of every 6 loans held by Freddie Mac and Fannie Mae are delinquent.
To qualify for the new program homeowners will have to be at least 3 months behind of their mortgage and have to owe 90% or more of their home's current value. Homeowners who filed for bankruptcy are not eligible for the program. In addition, homeowners' interest rates would be reduced so their mortgage payment is no more than 38% of their monthly income (similar to a plan IndyMac introduced in October 2008), loans can be extended for 30 to 40 years or some of the principal can be deferred interest free. Contact Freddie Mac or Fannie Mae to get more information or contact a HUD counselor at 888-995-4673.
So far, 2,795,920 people have filed for foreclosure this year. Millions of Americans need help and the government and other banks have begun implementing plans to help homeowners but in some cases it is too late. There should be a fine charged for those banks that did not help customers before the bailout plan and before these new programs have been or will be implemented.
Why are banks allowed to behave in any manner they choose and nothing is done about it. Banks should also develop programs for homeowners who lost their homes because they were unable to get help to save their homes. Is anyone concerned about the Americans who lost their homes because the banks refused to help them? We should be. I applaud the government and banks for developing plans but I fear it will not be enough. If the government can help bailout airlines and loan money to foreign countries surely they can help all Americans stay in their homes. Write your state house of representatives and congressman and express your concerns.
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