A new Federal Reserve study has evidenced that more than 2.3 million borrowers were prevented from refinancing their homes in 2010 due to strict lending standards and a steep decline in the value of many homes. The study validates the struggles lawmakers have faced when trying to encourage homeowners to refinance their homes in order take advantage of the historically low interest rates, something many mortgage industry experts have pointed to as a potential cure for the current state of the U.S. housing market.
The study found that many homeowners would have qualified for home refinances just before the mortgage bubble burst, but stringent lending standards prevented many from doing so. As a result, many homeowners were left holding the bag and owe more than their home is currently worth. 7.9 million home mortgages, which include refinances, purchases and other forms of loans, were made in 2010, a from from the peak of 21.5 million in 2003. The report evidences the failure of the 2009 Home Affordable Refinance Program which, to date, has only enrolled 830,000 homeowners, a number far below the millions of homeowners it was expected to aid.
If you are facing a Florida Foreclosure Lawsuit and were denied a mortgage modification or a mortgage refinance, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to determine what foreclosure alternative options may be available to you.
