jump to navigation

Mortgage Assistance? FDIC Encourages Forbearance for Unemployed September 16, 2009

Posted by John Watch in AccuriZ News, News Feed.
Tags: , , , , , ,
trackback

The Federal Department Insurance Corp. has recently encouraged acquirers of failed banks to offer forbearance to

Image Courtesy: Eurosilex.com

Image Courtesy: Eurosilex.com

unemployed or underemployed borrowers through a new program. We will take a look at this FDIC program and compare it to the AccuriZ Mortgage Assistance Program (MAP) created months prior.

This FDIC initiative –available to institutions that have acquired failed banks through loss-share agreements with the FDIC – is requiring only a portion of monthly mortgage payments from borrowers for up to 6 months. As a result, unemployed borrowers can find jobs, and banks aren’t forced to foreclose with a portion of payment still being received.

The AccuriZ Mortgage Assistance Program, if initiated, would allow homeowners owning no more than one property who are unable to afford a full mortgage payment to pay a reduction, with the government covering the difference to be reimbursed in 7 years. The repayment would be over 10 years at an interest rate of 3%.  Up to $25,000 could be provided in a year, with a $50,000 cap for 36 months. Click HERE to see additional benefits.

Although the FDIC program is a positive effort with good intentions, a 6 month cap for unemployed borrowers is highly optimistic given the current state of the economy. Also, given the requirements and eligibility, the FDIC program would not have the significant impact in overall homeowner assistance as HAMP is trying to execute. More foreseeable problems and concerns over impact can be seen HERE.

Some drawbacks to the Mortgage Assistance Program would be the Application Filings and Processing. Possible solutions for these problems can be seen HERE.

Whether the FDIC program will follow through with its good intentions if initiated remains to be seen, but it’s good to see institutions attempting to weather this foreclosure storm any way possible. The AccuriZ Mortgage Assistance Program has its obstacles, but with a focused effort could very well be implemented.

Gives us your thoughts and opinions on the two. We only fail if we do not try.

Bookmark and Share

Advertisements

Comments»

1. Make Home Affordable Federal Housing Loan Relief | Mortgage Relief Programs - September 27, 2009

[…] mortgage assistance? fdic encourages forbearance to unemployed […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: