Good News For Homeowners Foreclosures Are Being Delayed

Online, November 4, 2010 (Newswire.com) - Thanks to lawmakers, homeowners don't have to worry about getting their homes foreclosed due to over mortgage payments. A new housing bill has just been signed into a law to help distraught homeowners who may be at risk of foreclosure. The law gives homeowners the chance to refinance their high-cost mortgage loans into more affordable ones that will be supported by the federal government.

According to a recent Reuters news report, four members of a congressional housing market oversight panel have publicly urged the mortgage industry to temporarily back off of foreclosures in order to give the new law a chance to help.

The four Democrats who are members of the House of Representatives Financial Services Committee plan to hold a public hearing on September 17 to determine if mortgage lenders have complied with their request to delay foreclosure actions. These lawmakers signed a letter that was sent to the chief executives of major financial institutions and financial industry lobbying groups.

Among the beneficiaries of the letter were Mortgage lenders HSBC Finance, JPMorgan Chase & Co, Fannie Mae, Freddie Mac and Wells Fargo & Co. The lawmakers asked that the financial institutions review loan documents and prepare to refinance eligible homeowners, rather than starting the foreclosure process.

However, for those homeowners who weren't able to take advantage of this new law, bankruptcy attorneys from Nichols Bankruptcy Law can help them go through this very difficult and challenging situation. The new law may not save their homes from being foreclosed but these lawyers certainly can.