The Federal Foreclosure Assistance Center Introduces Their Public/Private Alliance Model to Work with Government Agencies to Help Homeowners

The Federal Foreclosure Assistance Center has introduced their business model for the development of an alliance between government and private businesses to offer immediate assistance to homeowners at risk.

The Federal Foreclosure Assistance Center Introduces Their Public/Private Alliance Model to Work with Government Agencies to Help Homeowners
New York, NY, July 25, 2008 --( The Federal Foreclosure Assistance Center has announced their new development of a private public alliance model, to help homeowners in co-operating cities, counties and states. Fedfac has develop a model program to offer their assistance at no cost to homeowners and is able to assist all homeowners in all areas that they have a co-operative agreement in place.

The Federal Foreclosure Assistance Center, www.fedfac, is a private service that works in conjunction with cities, counties and state agencies to assist HomeOwners at risk. The Federal Foreclosure Assistance Center, has developed a model to offer various localities their services to for allproperties owners. The public/private alliance would thus allow cities and towns to offer assistance and direction and loan mitigation that is effective to homeowners in their jurisdiction regardless if the property is owner occupied, second homes, investment properties (some restrictions due apply to investment properties).

The Fedfac alliance would allow homeowners, to access their debt mitigation on line assistance program and get immediate help, loan mitigation packages and complete assistance without face to face meetings. The Fedfac program puts together the entire loan mitigation package on line and within 72 hours of completing the on line questionnaires the homeowner has a completed package, instructions and other assistance depending on their individual situation, no matter where in the process they are.

The Alliance allows local governments to offer temporary aid to their residence without capital expenditure, without employees and allows them to offer the assistance almost immediately without a long term committment.

The Federal Government proposals develop some relief for homeowners, “But even the most optimistic forecasts suggest it would help only about 400,000 of the estimated 3 million homeowners who will likely lose their homes in the next year. And with home prices still falling in most parts of the country, some analysts and economists say it will take at least another year before the housing market hits bottom and begins to recover,” writes John W. Schoen Senior Producer MSNBC.

The centerpiece of the proposed foreclosure relief effort is a package of federal loan guarantees to help strapped homeowners refinance into market-rate mortgages with better terms than the high-cost loans that are busting their household budgets. Lenders would have to agree to take a substantial loss on the existing loan.

But attorneys, housing counselors and others working with strapped homeowners say the proposal falls short because it leaves the decision to modify a loan up to individual lenders or loan servicing companies.

As a result, that means the housing bill will have “little or no impact on the number of foreclosures,” according to O. Max Gardner III, a Shelby, N.C. bankruptcy attorney who works with homeowners who are trying to modify their mortgages.

“I just don’t think the bill addresses the core problem,” he said. “You have so many servicers representing so many different interests with each (mortgage pool) to some extent having different guidelines on loan modifications.”

The reforms won’t help those with existing loans who face default and foreclosure — or their neighbors who are seeing their home’s value decline.

“It’s not going to speed up or lessen the impact of the correction of the housing market,” said Wachovia economist Mark Vitner. “It’s too late for that. There's nothing that can be done.”

Unless foreclosures can be slowed, home prices will likely fall further, according to Federal Reserve Chairman Ben Bernanke.

“The declines in home prices have contributed to the rising tide of foreclosures,” he told a congressional panel last week. “By adding to the stock of vacant homes for sale, these foreclosures have in turn intensified the downward pressure on home prices in some areas.”

To help offset that pressure, the bill provides $4 billion in community development grants to help state and local housing agencies in hard hit areas buy and refurbish foreclosed homes, renting them out or reselling them.

The Federal Foreclosure Assistance Center, has set up a hotline for city and county and state administrators to learn about this program, 561-820-1757. Home Owners looking for assistance can watch the website to see the announcements of the public/private cooperative agreements.

In an effort to assist homeowners at risk to day, The Federal Foreclosure Assistance Center will refund any fees paid by its users, if at a later date a public/private agreement is reached that covers their property location.

Federal Banking Coop
Barry Steinhorn