Making Home Affordable programme intended to help foreclosure victims

The Obama government has launched the Making Home Affordable programme. Lenders are being encouraged to be more proactive in helping the foreclosure victims so that their homes are saved and foreclosures are avoided. It was expected that by it millions would be benefited.

The finance industry is being criticized for not following up the matter speedily and sincerely. As a corrective step the government is planning to highlight the names of those who have failed in implementing the modification programme. The two biggest offenders are Bank of America and Wells Fargo. There are 31 mega financial bodies that have participated in the mortgage modification programme. They have taken billions from the federal government as bailout funds. They are worried about their public image – understandably so. To some extend they are enforcing the plan and the government is in a position to put more pressure on them.

There are reports coming in that Freddie Mac will be conducting random audits to find out if the borrowers are being informed regarding them being qualified for the plan. Efforts are also being taken to see that the house owners under threat from foreclosure are not being denied participation in the modification programme. Michael Barr of the Treasury commented, “We want to go faster. There are a bunch of servicers that are lacking in performance. They have to lift their game.”

The programme was initially optimistic about helping millions who were under the cloud of foreclosures. It was hoped that through the plan the monthly mortgage amount would be lowered. But although recently some speed has been noticed the numbers helped hardly scratch the surface of the problem.
The new programme is not welcomed by the lenders. As such it is financially better for them to foreclose and sell the property.

Meanwhile as per predictions foreclosures are marching ahead. During the first half of this year 1.5 million households have got foreclosure notices. The sheer magnitude of the numbers is making help difficult. It is anybody’s guess how many of this 1.5 million actually qualify for assistance. There are many who cannot manage even lowered modified amounts – so far gone are they in their financial troubles.

It is imperative for the financial entities to act and to follow the school maxim that ‘No Child is Left Behind.’ Nobody who qualifies for help should be denied it. Already many who could have got assistance have lost their homes.