Obama May Prohibit Home-Loan Foreclosures Without HAMP Review

[Joanne98]

Source: Bloomberg


Feb. 25 (Bloomberg) -- The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program.

The proposal, reviewed by lenders last week on a White House conference call, “prohibits referral to foreclosure until borrower is evaluated and found ineligible for HAMP or reasonable contact efforts have failed,” according to a Treasury Department document outlining the plan.

“It is one of the many ideas under consideration in the administration’s ongoing housing stabilization efforts,” Treasury spokeswoman Meg Reilly said in an e-mail. “This proposal has not been approved and there are no immediate planned announcements on the issue.”

She confirmed the authenticity of the document, which hasn’t been made public.


Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=ahuuwBS8KYq8&pos=2

[Robb]

1. Unintended consequence there

...While the review goes on, the bank adds on more missed payments and late fees and increases the debt. :shrug:

[Joanne98]

2. They need to give the bankruptcy judges more power to adjust the loans.

[skyounkin]

8. Soooo agreed.

[Fiendish Thingy]

3. too bad congress didn't have the cajones to pass the cramdown bill n/t

[WriteDown]

4. Moratoriums like this simply lead to a huge spike when they are up. nt

[Bluebear]

5. Why "may"?

[QC]

11. Someone might not like it! n/t

[dkf]

6. Won't this create a result where the Feds then become responsible for all foreclosures that DO go

Through? I can see where that would be nightmare pr

[Socal31]

7. Stop artifically supporting home values....

The real healing cant begin until they hit bottom.

The banks are doing it by holding forclosed properties off the market, and the Feds are doing it by purchasing mortgages...

[LibertyLover]

9. Too late for me - I lost my house last year

but I hope that it helps somebody.

[bemildred]

10. So we are thinking about possibly, sometime in the future, taking this problem seriously?

Some "leadership".

[Bluebear]

12. Possibly.