Obama Pushes Government Foreclosures Program

by Donald Hanz on Foreclosure Crisis

After President Barack Obama arrived from his first trip to Europe as U.S. president, he spoke with reporters and encouraged Americans to take advantage of the falling mortgage rates and the government foreclosures program that includes loan modification and refinancing options.

Obama said there are about 7 to 9 million Americans across the nation who could save up to $2,000 a year by applying for loan refinancing or loan modification under the government foreclosures program.

Among the people who were with Obama while he met with his advisers were a group of homeowners who had reduced their monthly payments by taking advantage of the government foreclosures program and the dropping mortgage rates.

Obama said his advisers have estimated that the average household can save about $1,600 to $2,000 annually from their mortgage payments if they refinance under the government foreclosures program.

The president also advised homeowners to visit the MakingHomeAffordable.gov web site and check the options available and check if they were qualified for mortgage refinancing.

In addition to the government foreclosures program launched in February, President Obama also announced that his administration is setting up additional measures to help other groups of homeowners who are in greater danger of losing their homes to private lender and government foreclosures.

Meanwhile, in support for Obama’s statements, Housing and Urban Development Secretary Shawn Donovan said mortgage rates for housing loans are expected to continue decreasing from their already low levels. He said the declining rates will help more homeowners to refinance their loans.

In the president’s talk with reporters and advisers, he cited the key role of the housing sector crisis in the national economic downturn. He reiterated the adverse economic effects of housing values that shoot up beyond manageable levels, the lack of financial regulation that could have controlled the use of complicated securities packages and mortgage practices that took advantage of homeowners.

The president described how the collapse of the housing market led to further drops in home values and devastation of the financial markets. The resulting private lender and government foreclosures continued the unending cycle of market collapse and financial sector devastation.

During President Obama’s trip to Europe, he met with heads of state about working together to find solutions to the economic crisis battering nations worldwide.

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