The troubled economy continues to affect many people in Tennessee and in other places all across the country. In October, more than 75,000 homes nationwide were sold in foreclosure. In Tennessee alone, more than 2,500 homes were in foreclosure, but it appears that help is on the way for some homeowners struggling to make their monthly mortgage payments.
One town in Tennessee has created a foreclosure prevention task force to provide homeowners with counseling services to help them find ways to pay their mortgages. The task force has also helped struggling homeowners connect with programs intended to help them pay off their home loans.
One of those programs is the Hardest Hit Fund. It was created after the state received $217 million. Through the program, homeowners can receive a loan of up to $15,000 to pay their mortgage. The program simply pays the monthly mortgage for up to year and homeowners don't have to worry about paying back the loan. After five years, the loan is forgiven, as long as the family remains living in the home.
Although the poor economy can be blamed on a number of different factors, the bottom line is that homeowners continue to struggle and many of them need assistance. Programs just like these can be hugely beneficial.
In addition to foreclosure prevention programs, homeowners may want to look into other options. For instance, a loan modification may make mortgage payments more manageable. In other cases, bankruptcy may be the best option. Through bankruptcy homeowners may be able to reorganize their debt and come out of the process more financially secure.
Source: The Daily News Journal, "Editorial: Foreclosure program a good step in turning tide," Nov. 28, 2011