With talks still ongoing this weekend about the debt ceiling and if lawmakers will reach an agreement, there is good news to come from Washington, at least for those unemployed homeowners.
The Obama administration has announced that they will extend unemployed homeowners a few months’ forbearance on paying their mortgages to 12 months. This is another action by Washington to put a halt to foreclosures and keep people in their homes. Obama has been quoted as saying the housing market has been a terrible issue to solve and that “The continuing decline in the housing market is something that hasn’t bottomed out as quickly as we expected, and so that’s continued to be a big drag on the economy.”
He also mentioned that they will be communicating with banks in the hopes that they will work more efficiently to help modify loans for those in need. And in order to qualify for the 12 months’ relief, homeowners must be in the process of looking for a job. And for those that can afford to pay a portion of the loan, they must do that, as well. You wouldn’t be mortgage-free the entire time.
Comments to this USA article suggest that programs like I’ve described just drag this crisis out longer and makes it tougher for those not struggling to make money on their home. What are your thoughts on this? By offering relief to some, is it negatively impacting others? Will this keep the housing market at an all-time low for too long? I’d love to hear your thoughts. Please leave me a comment or visit me online.