The Beacon recently reported on enduring foreclosure difficulties facing St. Louis residents. Though signs of economic recovery continue to pop up, many homeowners are still struggling to make ends meet. The piece is a sobering reminder that our economy is far from fixed.
The article highlights Chris and Kelly Green, whose family of five has been crippled by unexpected expenses and the difficult job market. Both parents are employed, but Kelly has reduced her hours with the arrival of their new daughter. Their precarious finances were dealt a crushing blow when Chris was in a car accident, leading to medical and repair bills.
As part of the Greens’ efforts to reduce expenses, they successfully appealed to their lender. Though they did have their payments reduced for a short period, the temporary fix didn’t make a dent in the family’s long-term financial problems. In hindsight, the opposite may be true. The report explains that the family is required to make up the difference, and they must pay 150% of their original payment for 11 months. The additional expense is difficult to manage as their financial situation has not changed considerably since they first applied for the modification.
The government’s effort to aide homeowners has been largely unsuccessful. Obama’s Home Affordable Modification Program (HAMP), an initiative that gives incentives for banks to modify the mortgages of struggling homeowners, was widely viewed as a good start in the effort to turn the tide of the housing crisis. HAMP, however, has not met the administration’s expectations of saving 3 million homes. The program has resulted in only 66,645 permanent modifications.
You can read the full Beacon article here. As always, if you’re having difficulty making your mortgage payments or are facing foreclosure, please speak with a housing counselor. You can find a trusted resource close to you by using our community resource map.
From the Beacon’s Job Talk: GO! Network
Thu, Feb 11, 2010
Connect to Resources, Crisis in St. Louis, Financial Crisis