Previously, a federal program had sold more than 100,000 dissatisfactory mortgages to private investors at discounted prices. The program is not getting revamped.
Due to criticisms from a lot of legislators and housing advocates, federal housing officials have taken the matter into consideration and will not be working with private investment firms. Moreover, the private investment firms are urged to consider reductions in total amount of money owed on a mortgage. This is done as their will be modifications to be made and also to make a loan more reasonable and affordable. The reductions represent a change in a government program that was previously after the housing crisis started.
The Department of Housing and Urban Development said that the housing agency is concerned and committed to given protection to homeowners who are struggling and will make sure they don’t have to face foreclosure and stay in their homes.
The addressed changes in the program are there to make certain about the stressed homeowners. However, it’s not sure and confirmed how efficient the program will be since only a few weeks are remaining of the Obama Administration.
The new rules made will not be applying to more than 105,000 mortgages which are already sold by HUD in auctions. Even though the housing market has improved, still a lot of homeowners will be stressed.
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