Help is on the way for homeowners caught in subprime madness
While the rising price of fuel and food has taken center stage in the press and in the lives of consumers, many are still grappling with the aftershocks of the subprime mortgage meltdown mess.
Last month, the Washington Post reported that the metropolitan area has one of the fastest foreclosure rates in the nation with more than 15,000 homes affected during a one-year span ending in February.
Prince George’s has been hit particularly hard by the mortgage crisis, but help is on the way for homeowners no matter what stage they are in with their lenders.
The Neighborhood Assistance Corporation of America plans to conduct a multi-day free seminar for homeowners in the DC region who are struggling under the weight of their mortgage payments or have fallen into the foreclosure process.
NACA housing counselors will be on had from July 19-23 at the Capital Hilton Hotel located at 1001 16th Street NW. The services are free, but those interested in participating are encouraged to sign up on the Web at https://www.naca.com/refinance/dc_event_step.jsp. Or call toll free at 888-302-6222 for more information.
In a recent statement, NACA said it’s been working with lenders like Countywide Financial and Citigroup to carve out agreements that lead to affordable loans for borrowers so they can keep their homes.
Under the program, NACA evaluates what homeowners can afford by looking at net income, deducting only the required debts, housing expenses and about $200 for emergencies. The result is a payment borrowers can afford with a fixed rate mortgage. NACA said the two variables are the interest rate and the outstanding mortgage amount. Countrywide, Citibank and other lenders have reduced one or both to reach an affordable payment over the long-term.
NACA said everyone wins with these solutions: “the homeowner keeps their home with an affordable mortgage over the long-term, the loan servicer gets a performing loan, and the investor gets a reasonable return versus no return and avoids foreclosure costs. Communities are not devastated by massive numbers of foreclosures.”
--PGS Staff
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