With more than 10 million homeowners facing foreclosure, measures to slow down the number of Americans losing their homes to banks have been paltry, at best. Of the 3 to 4 million borrowers whom applied for assistance under the Home Affordable Modification Program (HAMP), fewer than 400,000 have made it to loan modification. The latest kitchen sink being thrown at the problem is an alteration and addition to the Making Home Affordable program.
Earlier this month, Fannie Mae, the larger of the two giant GSE in the secondary market, launched KnowYourOptions.com. This site offers detailed information via videos, testimonials and step-by-step recipes for keeping your home out of foreclosure.
KnowYourOptions.com is an easy to use menu-driven website. Upon entering, users simply start by clicking on the following choices:
Explore Your Options
Be Prepared
Find Helpful Resources
Hear from Homeowners
While this new program may prove helpful to struggling homeowners oblivious to alternatives that have been available for years, the reality for anyone facing foreclosure is whether or not their job pays enough to cover mortgage and living expenses. Sadly, the deteriorating job market makes this program academic.
Programs contained in the Neighborhood Stabilization Act are more effective in addressing falling home values. If there is a second stimulus, let's hope money is spent from the bottom-up to stabilize real estate markets instead of bank balance sheets.