As the U.S government continues to work with lending agencies and home owners in a bid to bring down foreclosures some positive results are finally showing up with a series of programs achieving success. The success rate of the foreclosure prevention programs are more distinct in the states of Texas, North Carolina, Ohio and Florida which have been ranked as witnessing the highest number of repossessions over this last two quarters.
Some of the programs that are currently recording success in the prevention of foreclosures are discussed below:
Payment Plan Scheme – For home owners who are facing tax foreclosures, the government has launched a payment plan scheme through which defaulters can get in touch with the county offices and work out an agreeable payment mode for repaying their taxes. One of the areas where this scheme has received a positive response from home owners is Berrien County, NC where more than 200 people are currently on the plan with the county authorities.
Mortgage restructure plan – Similar to the loan modification plan this plan has been launched by the Federal Housing Authority and is running successfully in more than seven U.S states currently. Under this program the FHA is encouraging home owners who are facing impending foreclosure properties to get in touch with the lenders and offer counseling as well as mediators to help them restructure their mortgage.
Federal Mortgage Aid – Under this plan 10 states in the U.S including North Carolina and Florida have been allocated a sum of $75 billion to help home owners prevent foreclosures. Home owners who have a good payment record as well as clean bank history can qualify for availing financial assistance through the Federal Mortgage Aid Fund. At present 72,000 residents in North Carolina are getting support under this program and have been able to prevent their homes from getting repossessed.
Home Protection Program – This program has been launched by the U.S Department of Housing and Urban Development and is running through the FHA in all the states. Home owners who have faced unemployment through no fault of their own can qualify for financial aid to repay their housing loans and thereby avoid their properties from foreclosures.
A common eligibility criterion for all the above schemes is that the worth of the properties should exceed the outstanding loan that has been recorded against it.
The U.S government has also passed a bill to help mid income home owners in preventing foreclosures. According to this bill, lenders are required to get in touch with home owners with subprime loans and warn them before time before issuing a foreclosure notice in the court. Under this bill, the federal banking commissioner is also required to be notified of the proceedings so that sufficient support counseling can be provided to the home owner in order to prevent the property from being foreclosed.

This entry was posted on Monday, August 30th, 2010 at 12:39 pm and is filed under Foreclosure News.