The Obama administration’s beleaguered mortgage relief program may finally be getting to the point where it may be of use to the typical homeowner.
The program was launched in the spring of 2009, but has attracted less than 70,000 homeowners who have been able to complete the program so far.
Part of the problem lies with restrictive rules that give holders of second mortgages and equity lines veto power over loan modification efforts. But those rules are now changing, resulting in at least the possibility that the program may at last help a significant number of people whose houses are worth less than what they owe in mortgage debt.
This is potentially good news for hard hit areas such as Lawrence, where bankruptcies and foreclosures are common, but stay tuned; it may be a while before we know whether the red tape can really be cut by an typical homeowner.
By Doug Beaton