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Federal officials seek changes to help struggling mortgage payers

Many California residents have been enjoying the last couple of years, financially speaking. Things have been on the uptick ever since the 2008 economic depression (caused by the housing market collapse), and though things still are not quite back to where they were, it certainly appears we are on our way.

However, even in good times, there are those that need help sorting out their financials. There are still many people struggling with the possibility of foreclosure, and many more struggling to find work or to keep up with their bills.

It appears numerous federal officials are trying to help out people who are struggling with their mortgages by asking for the acting regulator of the two powerhouse firms Freddie Mac and Fannie Mae (which are federally-owned) to be removed from his post. The reasoning here, made by nine state attorneys general (including California’s), is that the current acting regulator is unwilling to reduce principal rates on mortgages paid by people who are barely keeping up.

When you consider that Fannie Mae and Freddie Mac own 60 percent of the mortgages in this country, and that there are still a vast number of people out there on the brink of foreclosure, this would seem like a helpful move for many. However, these are complicated matters which may not be resolved anytime soon.

It is important to remember that if you are at risk of having your house foreclosed, you could seek bankruptcy to keep a hold of your house. When you file, you will get an automatic stay that protects your home from foreclosure (for the time being). A Chapter 13 filing is most effective for this type of move.

Source: Los Angeles Times, “9 state attorneys general want housing official DeMarco replaced,” Jim Puzzanghera, March 18, 2013

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