houserefinancecenter.com Blog

When will there be Rent Modification Program?

July 4th, 2010

You buy a house you can’t afford. You run into problems paying the mortgage. You get lots of help to avoid foreclosure. There is HAMP to modify your loan, and HARP to refinance your loan and HAFA.

You decide to wait until you can afford to buy a house, and continue renting. You run into problems paying the rent. You get some degree of help. There is the Housing Choice Voucher Program (section 8). Public Housing, and privately subsidized housing. The private program is where the government pays the landlord to provide housing at reduced rents to low income families.

We need more help for renters. Many of the families that lose their homes will become renters. The average rent for the 2 bedroom apartment is $900. This unit would be suitable for a family of 4. But how long can they hold onto the apartment. If the reason for foreclosure was job loss, it is only a matter of time before they lose the apartment as well. The result will be homelessness.

The shelters and food banks are already stretched to capacities. These provide a short term solution. We need a permanent long term solution.

Expansion of the voucher program would be a step in the right direction. Studies have shown that the voucher programs are effective and cost efficient. The Center on Budget and Policy Priorities (CBPP) did an analysis of HUD data covering December 1, 2007 to March 31, 2009. The findings discovered that voucher help went to 54% of families with children, to 19% who had disabilities, and to 17% who were elderly.

Entry Filed under: Housing Inventory