| The ABCs of Obama's anti-foreclosure plan |
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President Obama's effort to save families from foreclosure is off to a slow start. Making Home Affordable is supposed to help 1.5 million to 2 million borrowers lower their mortgage payments and keep their homes. But there have been two main problems: Problem 1: The banks and mortgage servicing companies that must make the program work haven't hired enough staff to deal with the crush of applicants or shown much enthusiasm for the effort. Problem 2: Too many families couldn't qualify because they are carrying much more debt than anyone could possibly afford on their current income and owe far more than their homes are worth. They need more help than the program was designed to provide. That doesn't mean you should give up. The president continues to push the banks and mortgage companies to work more quickly and cooperatively with borrowers. And he keeps tweaking the rules to allow more families to qualify. The most recent change allows homeowners to refinance up to 125% of the value of the homes -- up from 105% in the original plan Just be prepared for the same delays and frustrations homeowners trying to negotiate with their lenders have had to put up with ever since the housing crisis began. |
