Is Foreclosure Aid Targeting Homeowners Correctly?

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In February, 3,750 New Jersey homeowners were sent foreclosure notices, according to RealtyTrac, an Irvine, Calif.
-based firm that tracks real estate trends.
That number, however, is still about 14 percent higher than the number of filings sent in the same period last year.
Since the foreclosure rates continue to rise, this indicates the existing program isn't currently working.
To help homeowners facing the dilemna of losing their home even further, President Obama announced an expansion of the existing program geared towards helping people who are in foreclosure.
The porgam will cause the government to bear most of the burden.
How? By allowing homeowners who owe more than their house is worth to get new loans backed by the Federal Housing Administration, a government agency that insures home loans against default.
To qualify for the FHA refinancing program, borrowers must not have fallen behind on their existing mortgage payments.
Why would a person who is has not missed mortgage payments need help from the government? Those borrowers are paying their mortgage, it is the homeowners who are missing payments that need assistance.
There is a separate provision which allows a homeowner who is unemployed to stay in their home for up to six months.
Also, mortgage companies who agree to reduce the principal balance of homeowner loans will receive incentives from the government.
The administration cautioned that the plan isn't intended to stop all foreclosures or assist all troubled homeowners.
"There's no intention here of tackling what may be 10 to 12 million foreclosures over the course of the next three years," said Diana Farrell, a White House economic adviser.
The government is showing great effort to help homeowners.
However, it stills depends on the willingness of the banks and mortgage companies.
They have received bailouts and remain stingy when it comes to bailing out homeowners.
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