Housing Crisis: Help for Homeowners

What is the best way to help homeowners in crisis? To date, at least six or more major plans in the works to help homeowners -- with more in the works. Find out what is working and what's not.

Former treasury secretary, Hank Paulson, and his staff proposed driving down mortgage rates to as low as 4.25%, in hopes of getting buyers back into the market. The Bush White House supported Paulson’s plan.
 At odds with Paulson’s plan is Sheila C. Bair’s, chairwoman of the Federal Deposit Insurance Corporation. Her plan would offer a guarantee to lenders who agree to modify their existing loans to cut mortgage payments to 31% of a homeowner’s gross income.  If lenders cut interest rates or extend the life of the loan, the Government would cover part of their losses should a homeowner default.
 These two plans and the other competing plans have led to deep disagreements that may not be resolved until president-elect Obama takes office. What is very clear is that a stronger policy response is desperately needed.
 And help needs to arrive quickly. What we have now are ineffective programs, unable to stem the tide of foreclosures that are estimated to affect 10 million homeowners over the next five years.
Our Help For Homeowners guide clearly explains each competing plan, along with any new plans, so that homeowners in distress can make informed decisions. We will also be creating and maintaining a list of helpful resources that will include organizations, faith-based groups and charities helping homeowners in crisis. In addition, we will be keeping a list of scams that have been targeting vulnerable homeowners.
Please note that we will actively update this resource. Visit it frequently as new information will be added on a daily basis
 If you have a suggestion, know of a web site or have a comment on how we can make our guide more complete, please drop us a line at support [at] housing [dot] com

Making Home Affordable Plan

Making Home Affordable will offer assistance to as many as 7 to 9 million homeowners, making their mortgages more affordable and helping to prevent the destructive impact of foreclosures on families, communities and the national economy. ...more

The Subprime Borrower Protection Plan

This proposal ensures that subprime borrowers will not be thrown out of their home because they cannot meet the terms of a predatory mortgage. ...more

Countrywide Homeownership Retention Program

The Countrywide Financial (Bank of America)Homeownership Rentention Program for Countrywide customer will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 Countrywide customers nationwide. ...more

JP Morgan Chase Loan Modification Program (866) 550-5705

The JP Morgan Chase & Co Program is expanding their mortgage modification program by undertaking multiple initiatives designed to keep more families in their homes. Hotline: 1-866-550-5705 ...more

IndyMac Federal Bank FDIC Program

The IndyMac Federal Bank, FDIC Program implement a new program to systematically modify troubled mortgages. The program is designed to achieve affordable and sustainable mortgage payments for borrowers and increase the value of distressed mortgages by rehabilitating them into performing loans. ...more

Citi Homeowner Assistance Program

The Citi Homeowner Assistance Program will work to proactively help potential at-risk borrowers remain current on their payments and ultimately in their homes. The program begins November 11, 2008 and ends May 2009. ...more

Helping Families Save Their Homes in Bankruptcy Act

This bill was first introduced and sponsored by Senator Richard Durbin [Democrat - Illinois] in the fall of 2007, when experts estimated that nearly 2 million homeowners were at risk of losing their homes to foreclosure. Today nearly 8.1 million homeowners -- nearly 16% of all homeowners are at risk of foreclosure. ...more

HopeNow Alliance Program

The Hope Now Alliance is a cooperative effort between the US government, counselors, investors, and lenders to help homeowners who may not be able to pay their mortgages. ...more

HOPE for Homeowners Program (H4H)

The HOPE for Homeowners (H4H) program was created by Congress to help those at risk of default and foreclosure refinance into more affordable, sustainable loans. The Hope for Homeowners program is intended to provide homeowners with new, 30-year fixed rate mortgages insured by the Federal Housing Administration (FHA). ...more

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