Homeowners in California to Receive Further Assistance from Obama

In again another effort to help stem the foreclosure crisis that has hit California and homeowners all across America, the Obama Administration announced two new foreclosure prevention programs.

Below is a summary of each...

Hardest Hit Fund Program:

• Available to states that have unemployment rate at or above the national average over the past 12 months
• Provide temporary assistance to eligible homeowners to assist them in paying their mortgage
• Homeowner has to be seeking re-employment, additional employment or undertaking job training
• $2 billion allocated to program

HUD Emergency Homeowners Loan Program:

• Available to homeowners in hard hit local areas that are still being determined
• Offer homeowners deferred payment bridge loan (no interest) for up to $50,000 to assist with payments on mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months.
• Homeowner must be able to show reasonable likelihood of being able to resume payments within 2 years
• Only available for homeowners on principle residence
• Demonstrate a good payment record prior to the event that produced the reduction in income

Are these programs helping Americans? Or are we prolonging the inevitable? We have seen the effectiveness, or lack of it, with the Government's attempt to save the American homeowner with the "Mortgage Refinance".

I believe the quickest road to recovery is to let the process work itself out naturally... as each bad loan (homeowner who could not afford their mortgage payments) turns into a good loan (homeowner that can afford their mortgage payment and have the income to prove it!)

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