Saturday, July 25, 2009

Helping the Unemployed Pay Their Mortgages

As more jobless fall into foreclosure, the Obama administration is looking at ways to help them save their homes. Homeowners in trouble are having mixed results applying for President Obama's foreclosure prevention plan. As a growing number of jobless Americans default on their mortgages, the Obama administration is considering new ways to help them avoid foreclosure. Among the options being floated are giving the unemployed money, in the form of grants or loans, to cover their mortgage payments or allowing them to remain in their homes as renters after foreclosure. The plans remain in the formative stage and are likely to encounter resistance in Congress. The expanding unemployment rolls have long vexed policy makers focused on stabilizing the housing market. Existing foreclosure prevention programs, including those such as the president's loan modification plan, generally do not help the jobless because they don't have enough income to sustain even reduced monthly payments. See CNN Money Article

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