Obama, after being left with a crippled economy, is trying to manage to keep it afloat with means necessary. This next attempt will have many homeowners staying tuned with their fingers crossed. President Obama‘s corner is throwing out what they hope is their next big solution for stopping this foreclosure epidemic and according Laurie Goodman, Senior Managing Director at Amherst Securities
Group, expects the numbers in 2010 to reach about 12 Million homes across the United States. 7 Million of those are expected to be homes affected by foreclosure and about 5 Million homes are going to find themselves even further under water. We are seeing our short sale processing growing exponentially as well as our growth in short sale out sourcing or short sale processing services. These new programs and changes once again like the rest of the Obama Mortgage modification programs or the HAMP-MHA are strictly up to the lenders to choose to participate.
Obama May Prohibit Home-Loan Foreclosures Without HAMP Review
By Dawn Kopecki
Feb. 25 (Bloomberg) — The Obama administration may expand efforts to ease the housing crisis by banning allforeclosures on home loans unless they have been screened and rejected by the government’s Home Affordable ModificationProgram.
The proposal, reviewed by lenders last week on a White House conference call, “prohibits referral to foreclosure until borrower is evaluated and found ineligible for HAMP or reasonable contact efforts have failed,” according to a Treasury Department document outlining the plan.
“It is one of the many ideas under consideration in the administration’s ongoing housing stabilization efforts,” Treasury spokeswoman Meg Reilly said in an e-mail. “This proposal has not been approved and there are no immediate planned announcements on the issue.”
She confirmed the authenticity of the document, which hasn’t been made public.
At present, lenders can initiate foreclosure proceedings on any loan that hasn’t been submitted for HAMP eligibility. Under current HAMP rules, foreclosure litigation can proceed while borrowers are under review for the program or even in a trial modification.
The proposed changes would prohibit lenders from initiating new foreclosure actions before loan screening by HAMP and would require lenders to halt existing proceedings for borrowers once they are in a trial repayment plan.
The Treasury Department will soon release guidance “which will include a set of improved protections for borrowers” in HAMP, Phyllis Caldwell, chief of Treasury’s Homeownership Preservation Office, said today in testimony prepared for a House Oversight and Government Reform subcommittee. She didn’t provide details.