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Homeowners Want Information on Foreclosure Homes Bailout

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By : John Cutts    99 or more times read
Thousands of distressed homeowners sent e-mails and called various agencies requesting for information on President Barack Obama’s foreclosure homes prevention program.

Brian Faith of the Federal National Mortgage Association or Fannie Mae said that thousands of e-mails and calls were received by the government-affiliated agency from troubled owners of distressed properties who want to know if they are eligible for Obama’s anti-foreclosure homes plan.

He explained that over 20,000 distressed homeowners sent e-mails and 10,000 more have called asking whether they have a mortgage loan owned and guaranteed by the agency. He added that the volume of calls was eight times the normal call volume that the agency handles.

Meanwhile, the Federal Home Loan Mortgage Corp. or Freddie Mac was also inundated with e-mails and telephone calls from distressed homeowners.

Brad German of Freddie Mac said that the agency received 1,600 calls and posted 42,000 Web visit for a single day. He claimed that homeowners wanted to call their mortgage servicers to find out about new options that will help them save their properties from foreclosures.

Under Obama’s anti-foreclosure homes plan, Fannie Mae and Freddie Mac will allow borrowers whose loans they own or guaranteed to refinance even if they have little or no equity. Both government-sponsored enterprises will also contribute over $20 billion for subsidizing interest rates to reduce monthly payments for homeowners on the brink or already in default.

Other private entities got their own share of action after Obama unveiled details of his anti-foreclosure homes plan.

Calls received by Countrywide’s central consumer line increased by almost 75 percent. JPMorgan Chase also experienced a heavy volume of calls on its mortgage hotline.

Meanwhile, the servicing department of Wells Fargo Home Mortgage received over 3,500 calls from homeowners who requested information about the anti-foreclosure homes plan of Obama. The volume of calls increased five times two days after Obama unveiled his foreclosure homes prevention plan.

Michael Moskowitz of Equity Now noted that calls received by the lending company were not mostly from troubled owners of distressed properties. He said that the anti-foreclosure homes program has been attracting homeowners who are current on their mortgages and can afford to meet their monthly payments.

On the other hand, the Housing and Urban Development registered 252,858 online visits while searches for housing counselors on its Web site increased by 14 percent.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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