Federal Program Is Not A Real Foreclosure Solution For Most

The NY Times is reporting today that the FHA Secure Program has helped very few people solve foreclosure because of the eligibility requirements. Here is the link to the article. I’ve blogged about this in the past. Most of the talk about foreclosure assistance from the Federal Government is just window dressing intended to give the appearance that they are trying to help. Clearly, they are not. Supposedly, they are now going to make it easier for people to qualify for help. We’ve heard this before and I would not count on it.

For the most part, foreclosure remains a private battle between borrowers/homeowners and their lenders. More and more, defaults are being triggered by the resetting of adjustable rate mortgages. As the problem grows, borrowers should remember that time is not on their side. The clock is ticking while lenders’ attorneys are running up a bill for collection work that gets added to the borrower’s principal. Borrowers meanwhile often go for months without any legal help, without realizing that they are actually paying the lenders’ lawyers to sue them! Too often I get calls from frantic homeowners only days before the sale.

If you’re in default, call an attorney right away. I offer free consults by phone as do most attorneys, so there is really no reason to delay in getting legal advice. Do not wait for the Federal Government to save you. If you do that, you will probably lose your home in foreclosure.