Foreclosure defense programs that were put into action by the Obama administration in 2007 are now being abandoned by many in the House and Senate who say that the programs cause homeowners more harm than good.
Votes in the House proved to be partisan, as Republicans voted to end the programs, and democrats voted to continue them. Republicans against the bills argue that they do not adequately protect homeowners from foreclosure, and, if the programs are ended, taxpayers could save $40 billion. Democrats in favor of the programs have said that they are important safety nets for homeowners who have been struggling in the harsh economy.
One of the first programs to be cut was one which helped people who lost their jobs by providing short-term loans so that they could pay their mortgages. Alabama will be affected the most by the loss of this program because it has the highest rate of unemployed homeowners who could have benefitted from the program.
If you are at risk of foreclosure and would like information about actions you could take to prevent the loss of your home, please contact the Birmingham foreclosure defense lawyers of Greenway Bankruptcy Law, LLC, at (205) 324-4000.