Obama Administration Requires Banks to Extend Foreclosure Forbearance for Unemployed Workers

[Omaha Steve]

http://blog.aflcio.org/2011/07/11/obama-administration-requires-banks-to-extend-foreclosure-forbearance-for-unemployed-workers/

by Arlene Holt Baker, Jul 11, 2011

The June jobs numbers, which came out on Friday, show just how dire and desperate the situation is for unemployed workers. As I travel the country, I hear the heart-wrenching stories over and over—including many of those who have been out of work for months and are on the verge of losing their homes. So this week’s White House announcement on helping homeowners with foreclosures is welcome news. Amidst the worsening foreclosure crisis, millions of unemployed homeowners facing imminent foreclosure will finally get some relief through adjustments made by the Obama administration.

Announced on Thursday, the Federal Housing Administration’s (FHA’s) Special Forbearance Program will now require mortgage loan servicers to extend the forbearance period from three months to 12 months and remove obstacles making it easier for unemployed borrowers to qualify for the adjustment.

The administration also plans to require servicers who are part of the Making Home Affordable Program to extend the minimum forbearance period from four months to 12 months.

FULL story at link.

[jimmyflint]

1. That's really good news, and will help a lot of people.

"AFL-CIO President Richard Trumka in a statement yesterday said that we need to make the banks that caused the economic recession pay their fair share. And he’s right".

Hell yes he is right.

Those robber barons are lucky I don't get to decide what their fair share is.

[babylonsister]

2. Thanks, Steve. My landlord is in this boat and just got this link.

:hug:

[Hydra]

3. Better late than never

Signs that maybe they're getting the idea that we need to do something governmental?

[eilen]

4. I reserve praise or criticism until

proposed mortgage forbearance is actually given and extended. Those who actually received this relief feel free to post your experience.

[eilen]

5. I reserve praise or criticism until

proposed mortgage forbearance is actually given and extended. Those who actually received this relief feel free to post your experience.

[Omaha Steve]

6. Kick

[lunatica]

7. How dare he..., Uh, wait! What?

Nevermind.

[malaise]

8. K & R n/t

[nc4bo]

9. I hate when I have questions sometimes....

Weren't the banks also required to modify homeowner's mortgages in return for TARP funds? Did a majority of homeowners actually get the help they needed from the banks? Were banks willing to work with or go out of their way to help homeowners struggling?

I remember far too many people complaining that many of the bank and mortgage companies were disgustingly stubborn and far too many were forced to give up their homes.

:shrug:

[EFerrari]

10. The banks used the HAMP program to lure homeowners into foreclosure

on the promise of a modification and the majority of those people did not get a modification but instead lost their homes.

[nc4bo]

11. Thanks for clarifying that EF. nt