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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