Among the issues affecting the drop in sales of South Florida homes and the decreased value of Palm Beach condos and homes, foreclosure is still one of the biggest culprits. Initiatives to combat home foreclosure and assist homeowners with their mortgage have been discussed left and right but for the most part, nothing has really proved effective.
As mortgage solutions become more and more intricate, the government appears to be taking a less is more approach this time by employing the FHASecure program, an initiative originally spearheaded by the Federal Housing Association (FHA) which at its core allows borrowers to obtain new mortgage financing terms.
While subprime mortgages are actually not as prevalent as most would expect due to the damage they’ve caused, even the less than ten percentile of homeowners who have one will attest that once their fixed interest rate ended, the new payments caused a huge financial headache and as everyone knows, a huge and unfortunate surplus in delinquencies which lead to the inevitable (i.e.: foreclosure).
The beauty of the FHASecure program is that it tackles the problem directly and effectively by not bailing out the homeowners but instead simply allowing them to pay back their mortgage for a fixed, manageable sum. Although it initially focused on borrowers with comparably low income, the government will be backing FHASecure and thus will be opening up eligibility to a larger portion of borrowers stuck with high interest adjustable rate mortgages.
Arguably the only major roadblock that’s preventing the FHASecure program from reaching its full potential in spite of the numerous people it has already assisted is the limited amount of financial resources available in order to really expand the program’s reach. Now that it will have governmental support, FHASecure may prove invaluable in giving millions of homeowners some room to breathe in the uncertain real estate market climate.
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