Federal Mortgage Relief Program Not Enough for Many Americans
Monday, 17 May 2010 11:12Although the federal government launched its foreclosure-prevention in February 2009, many homeowners say that it is simply not enough to keep them from facing foreclosure. The Obama administration has been urging banks to increase mortgage modifications for millions of households; however, another obstacle is surfacing from the murky depths. Many Americans’ debt troubles are far more extensive than just their mortgage, with the Home Affordable Modification Program (HAMP) providing little more than a band aid on a gaping wound.
In an article by James R. Hagerty and Ruth Simon in, The Wall Street Journal, “Debt counselors say some borrowers got into trouble because of overspending, while others are wallowing in debt because…of illness, divorce or unemployment.”
The article goes on to say that at Citigroup, Inc., borrowers who had their mortgages restructured but who are again falling behind on their loans “’have a much higher [overall debt burden] than those who don’t’”; this according to Sanjiv Das, president of the bank’s mortgage unit.
In the story, director of the Iowa Mediation Service, Mike Thompson, states that 25% to 30% of borrowers with mortgage modifications are seeking additional assistance keeping current with their remaining debt.
If you are having trouble making your mortgage payments or experiencing other debt, you may be considering personal bankruptcy protection. For a successful Chapter 7 or Chapter 13 bankruptcy, you need a great team of experienced lawyers on your side. For information on filing for personal bankruptcy protection, please call Legal Helpers toll-free today at 800-260-1402 to speak with a qualified and compassionate bankruptcy attorney. Your initial consultation is no-cost and could be the key to unlocking the door to your financial freedom.
If you are dealing with heavy debt burden you are not alone. According to the U.S. Treasury, the average U.S. homeowner still carries a heavy overall debt burden, despite mortgage modification. Median housing expenses to pretax income is 44.8% before modification vs. 31% after modification; median total debt payments to pretax income is 77.5% before modification vs. 61.3% after modification.
Don’t face your debt alone; call Legal Helpers at 800-260-1402.




