Mortgage relief program aimed at foreclosures
Included in the Wall Street reform legislation finally passed by Congress was a bill authored by U.S. Rep. Chaka Fattah (D., Pa.) that will create an emergency mortgage relief program.
Mortgage relief program aimed at foreclosures
Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, according to data released by RealtyTrac Inc., a foreclosure listing service. (AP Photo/Paul Sakuma)
( Paul Sakuma)
Included in the Wall Street reform legislation finally passed by Congress was a bill authored by U.S. Rep. Chaka Fattah (D., Pa.) that will create an emergency mortgage relief program.
Fattah deserves kudos for successfully steering the measure that will help eligible homeowners who have lost their jobs avoid foreclosure. With the country still trying to escape the grips of recession, that type of assistance is an important tool for recovery.
The program makes more than $1 billion in TARP funds available to families about to lose their homes. Homeowners may borrow up to $50,000, provided they can show they have a reasonable prospect of resuming mortgage payments within 24 months.
Administered by the Department of Housing and Urban Development, the federal project will be patterned after Pennsylvania’s Homeowners Emergency Mortgage Assistance Program, which has provided 41,500 homeowners with $433 million in assistance since 1984.
Yes, Fattah authored that legislation, too, when he was a House member in the state’s General Assembly. Nearly 90 percent of the participants in the Pennsylvania program have avoided foreclosure, and almost half, 19,700, have repaid their loans in full.
This is the type of bailout that produces tangible results that are easy to see. Until the unemployment rate drops significantly, programs that similarly help families make it through tight periods are worth the cost. They need a chance to get back on their feet.
Comments (4)
How dare the big, bad government loan people money to keep their homes? What America needs is more homeless families and tent cities. Just ask any GOP member of congress! They're working hard to intentionally tank the economy (yet again) so they can win the mid-term elections by claiming recovery programs don't work. They'll work, but only if you'll LET them work!— Speakingtruth- ...and democrats will seek reelection by blaming our troubled economy on G. Bush.— PhillyTru
Another disguised Fannie Mae program (which got us into this financial downfall in the first place thanks to liberal Congress mandate). Many of these people jumped on the "everybody should be in a home" program encouraged by FM and the government, even though they couldn't afford homeownership and the responsibilities that go with it. This program will waste more tax dollars and put us deeper in debt. Don't believe all the figures quoted about repayment in this biased article. No way. Don't pi-s on my leg and tell me it's raining.— dogman5- The only hope is they let the prices fall. How are people going to pay 200K in mayfair. You could have bought them for 70K before the crazy money lending scams. But the city does not want to have to lower property taxes that are based on 200K. Where are the jobs Obama!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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