Though many Americans may be facing foreclosure, a number aren’t doing what it takes to solve their debt problems.
A survey released by Realtor.com shows that about 20 percent of respondents who are facing foreclosure – or know of someone who is – haven’t started to deal with the problem.
Another 22.4 percent said that though they haven’t started tackling their possible foreclosure, they plan on doing so prior to the expiration of the government’s Making Homes Affordable (MHA) program.
The aim of the government program is to make home refinancing an option for more people. Since its introduction in February of this year more than 200,000 borrowers have received trial loan modification offers. According to the U.S. Department of Housing and Urban Development, “tens of thousands of refinances and trial modifications are under way.”
Only those with a mortgage with Freddie Mac or Fannie Mae can apply for the MHA program. Originally the program was limited to those whose first mortgage was no more than 105 percent of the property’s value. The value threshold for the program was recently expanded to 125 percent.
However, the Realtor.com survey shows that some Americans may not feel the program is effective. Of those surveyed, 41 percent feel that the program is not working, while 27.8 percent feel it is. The remaining respondents said they either didn’t know if it was working or felt it was too soon to tell.