Will new foreclosure program help?

Foreclosures in Georgia have reached record levels this year as unemployment has climbed above 10 percent.

Today, the Obama administration announced that it will expand a program aimed at helping people remain in their homes, the Associated Press reports.

The goal is to increase the rate at which troubled home loans are converted into new loans with lower monthly payments, Treasury spokeswoman Meg Reilly said.

The new effort includes increased pressure on mortgage companies to accelerate loan modifications by highlighting firms that are lagging in that area, AP reports.

The Treasury also will wait until the loan modifications are permanent before paying cash incentives to mortgage companies that lower loan payments. Under a $75 billion Treasury program, companies that agree to lower payments for troubled borrowers collect $1,000 initially from the government for each loan, followed by $1,000 annually for up to three years, AP reports.

Do you think this new initiative will help? Is a more aggressive plan needed? Or has the federal deficit ballooned too much?

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5 comments Add your comment

DawgBite

November 30th, 2009
3:57 pm

Yet another requirement that should of been put in before mortgage companies got any bailout money. Now just withholding 1000-4000 per loan from the mortgage companies really poses no pressure to the companies, not after the millions/billions in bailout is already in their pockets.

Lori

November 30th, 2009
4:27 pm

I got a loan modification from my lender but my payment went up almost $400, not sure if I can handle anymore help from the government on that great plan. I was told I made too much money for the Making Homes Affordable Stimulus Plan. After a 30% pay cut we made too much money – yeah right!

Mike

November 30th, 2009
5:05 pm

I can’t believe America has come to this. We have the President “shaming” the big Banks he just bailed out. The small Banks and Credit Unions will be the heroes in all this. Assuming they can survive the foreclosure and repossession wave (see: http://www.repofinder.com). Break up the big Banks and let the free market be free.

RT

November 30th, 2009
9:08 pm

Greentree Servincing continues to claim their investers will not participate in the present program. Will this new program be required by this company to participate in? What other help for those of us needing the help when the companty will not participate?

TOM BOYLEN

December 14th, 2009
2:29 pm

I AM SEEING A DIFFERENT SET OF ACTIONS PUT OUT BY WELLS FARGO. THEY ARE NOT THE GOLDEN BOYS THAT THEY WOULD HAVE THE AMERICAN PUBLIC BELIEVE THEY ARE. THEY HAVE BEEN JERKING MY SON AROUND FOR MANY MONTHS. EVERYTIME HE CALLS TO SPEAK TO SOMEONE, THEY TELL HIM A DIFFERENT SET OF WHAT HE NEEDS TO DO. HE IS SO CONFUSED NOW , HE DOES NOT KNOW WHERE TO TURN. THEY ARE PAST MASTERS OF GIVING PEOPLE THE RUN AROUND. I HAVE CALLED FOX 5 FOR HELP AND ALSO RAINBOW COALITION. IT IS A SAD STATE OF AFFAIRS WHEN SOMEONE IS TRYING SO HARD TO OVERCOME THESE PROBLEMS. I WISH I COULD KNOW WHAT TO ADVISE. MR STUMPF. WELLS FARGO CEO BRAGGS THAT YOU CAN CALL HIS OFFICE AND GET HELP………….I DO NOT BELIEVE THIS IS SO AFTER READING COMMENTS TO THIS FACT. I DO SO WANT TO HELP MY SON. ITS JUST NOT FAIR TO BAIL OUT THESE POWERFUL FIRMS AND THEY SIT BACK AND IGNOR THE LITTLE PEOPLE…………..THANKS FOR LISTENING……………..TOM BOYLEN