According to an article in the Dallas Morning News, the Obama administration is expanding the foreclosure prevention program to include borrowers who owe more than their homes are worth.
The article said:
"Housing secretary Shaun Donovan says borrowers who owe up 25 percent more than their home's market value will qualify for government help refinancing their mortgages. The program currently is limited to borrowers who owe 5 percent more than their homes are worth."
It's good news that more homeowners will be eligible for the foreclosure prevention plan; but now we just need to convince mortgage lenders to participate. Millions of American homeowners are facing foreclosure despite the investments into the foreclosure prevention program that has failed to deliver results.
Less that 200,000 homeowners have received help under this foreclosure prevention program, while millions more simply run out of time as they fight foreclosure. Homeowners who are underwater with their mortgage are particularly at risk for foreclosure. Even if they can no longer afford their mortgage it can be nearly impossible to sell their home at a price that will cover their mortgage. Many are simply choosing to walk away and relinquish their home to foreclosure.
If you are facing foreclosure and cannot qualify for help under the foreclosure prevention program, contact a Dallas-Fort Worth bankruptcy attorney today to find out how bankruptcy can stop foreclosure .