Amidst reports that Fannie Mae has actually been encouraging foreclosures rather than loan modifications, Michigan state officials are suing Fannie Mae. Despite the fact that the Obama Administration is supposed to be supporting homeowners who wish to be able to stay in their homes, this practice is being conducted by Fannie Mae. Michigan has experienced every major economic crisis in the past thirty (30) years and is now witnessing acres of abandoned homes, many of which are selling for pennies on the dollar.
“Analysts are expecting more foreclosures to enter the market over the next 12 months. This impending flood is described by some as a “dam that’s ready to break”, which is not an unfamiliar concept in the market today. Experts at the Iowa Legal Aid Foreclosure Defense Fund report the number of foreclosure assistance cases they handle is up significantly for August so far, and the rest of the year appears to be on the same trend.
It will be interesting to watch this lawsuit unfold and to see if other states will follow suit.
This underscores how important it is for those that want to stay in their home to not rely merely on free government programs to get a loan modification. Contact Amerihope Alliance today to work with someone who will agressively negotiate affordable payments on your mortgage and defend your home from foreclosure!