The House Financial Services Committee voted last week to end two federal mortgage programs, both managed by the Department of Housing and Urban Development, citing disappointing results as the primary reason for their ouster. The programs, one intended to deliver emergency funds to homeowners who have lost their jobs and another to lower monthly mortgage payments to "underwater" homeowners, have been labeled as massive disappointments by many. House Financial Services Committee Chairman Spencer Bachus, whose committee voted to eliminate the programs, stated "Congress needs to stop funding programs that don't work."
The Federal Housing Short Refi Option program, designed to force lenders to write down at least 10 percent of the mortgage principle on homes whose values have fallen dramatically, has been available since September 2010 but has only received 245 applications and modified 44 loans. House Republicans remain adamant that they will end the often-criticized Home Affordable Modification Program (HAMP) which has fallen far short of initial expectations. HAMP was originally intended to benefit 3-4 million homeowners but to date, only 600,000 borrowers have received permanent mortgage modifications under the program.
While most of the federal foreclosure prevention programs fell short of what many would call even modest success, they have provided at least some benefits for struggling U.S. homeowners. If you are one of the thousands of Floridians facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to see what foreclosure alternative options may be available to you.
