FDIC Program To Help Unemployed Homeowners

October 19, 2009

A new program has been proposed by the Federal Deposit Insurance Corporation specifically designed to help unemployed and underemployed homeowners who are facing possible foreclosure of their homes. The FDIC is encouraging banks to temporarily reduce the mortgage payments substantially for qualified homeowners for a six-month period.

However, only a small number of homeowners would be able to benefit from such a program because it would only apply to those institutions that bought failed banks and participate in loss-share agreements with FDIC. These institutions are primarily regional and community banks. But there is a possibility that such a program could be expanded to include other institutions.

The growing number of unemployed homeowners has long worried legislators. Other foreclosure-prevention programs don’t offer much help for the unemployed because they don’t have income at this point.

Posted in Helpful Hints, Lending, Real Estate, Things of Interest