The US Treasury reports that by August 360,000 homeowners had their monthly mortgage payments reduced, which was an increase, up from 235,000 in July.
The assistance plan, which was launched in February, pays cash to limit monthly mortgage payments to 31% of the borrower’s income.
US Treasury officials report they expect to approve 500,000 borrowers by the end of October. A trial period becomes permanent when the homeowner has made three monthly payments at the reduced amount.
The Treasury spokesman said that even if the program is a success, millions of foreclosures were still expected, the estimate being that more than 6 million US homeowners face the risk of foreclosure over the next three years.
A Federal Reserve official said that the real problem was the rising number of unemployed and that mortgage relief is no assistance if there in no homeowner’s income.
Treasury said that 47 Lenders had agreed to be involved in the loan amendment program, but that 21 of them had altered less than 5% of eligible loans, and that a number of them had amended none at all.
So the impact of the economic downturn will continue to be felt for some time.
Both homeowners and small businesses have been the hardest hit, and the best hope for improved employment, which will help reduce foreclosures, comes from small US businesses.
We help small businesses with our Local Search facility in our Business Directory by providing qualified prospects to the 10 million business listed, most of which are small businesses, at no cost to them.
Monte Huebsch, CEO.
The assistance plan, which was launched in February, pays cash to limit monthly mortgage payments to 31% of the borrower’s income.
US Treasury officials report they expect to approve 500,000 borrowers by the end of October. A trial period becomes permanent when the homeowner has made three monthly payments at the reduced amount.
The Treasury spokesman said that even if the program is a success, millions of foreclosures were still expected, the estimate being that more than 6 million US homeowners face the risk of foreclosure over the next three years.
A Federal Reserve official said that the real problem was the rising number of unemployed and that mortgage relief is no assistance if there in no homeowner’s income.
Treasury said that 47 Lenders had agreed to be involved in the loan amendment program, but that 21 of them had altered less than 5% of eligible loans, and that a number of them had amended none at all.
So the impact of the economic downturn will continue to be felt for some time.
Both homeowners and small businesses have been the hardest hit, and the best hope for improved employment, which will help reduce foreclosures, comes from small US businesses.
We help small businesses with our Local Search facility in our Business Directory by providing qualified prospects to the 10 million business listed, most of which are small businesses, at no cost to them.
Monte Huebsch, CEO.
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