New details of the Obama administration's plan to prevent foreclosure and stabilize communities were announced and Pasadena Neighborhood Housing Service is committing its full support to the plan's scope and strategy. Details of the plan clearly demonstrate the Administration's focus on supporting foreclosure prevention and neighborhood stabilization initiatives that will help the largest number of homeowners. "This is a promising step forward for millions of homeowners who are worried about losing their homes," said Marc Jones, Executive Director "The programs detailed today give hope and important guidance to millions of homeowners who thought that the only solution to their mortgage trouble was foreclosure. Foreclosure doesn't have to happen."
Pasadena Neighborhood Housing Service and other HUD certified counseling organizations - important parts of the President's foreclosure prevention plan -- stand ready to do their part to help qualified homeowners prepare to talk to their lender and to take full advantage of the bold plan announced by the Obama administration.Long-Term Loan Modifications:The Importance of Nonprofit Foreclosure Intervention Counseling:
For more information about the Homeowner Affordability and Stability Plan, visit www.financialstability.gov.
Community-based foreclosure intervention counseling provided by nonprofit certified counselors is a critical part of the foreclosure prevention process. Nonprofit counselors help homeowners understand their options and the steps they can take to stay in their homes. In addition to low-cost refinancing and lower mortgage interest rates, the President's plan gets out in front of the foreclosure problem and creates a standard for loan modification. Pasadena Neighborhood Housing Service is pleased to see modifications completed under the Homeowner Affordability and Stability Plan must be in place for at least five years, and that under the plan, a homeowner's mortgage debt-to-income ratio will be brought down to 31 percent. However, we maintain that in order to achieve sustainable homeownership, loan modifications must be sustainable over the course of the loan.