Yep, there, I said it. Can you believe it?
As embarrassing as this whole government shutdown has become it seemed an even bigger shame that the fledgling housing recovery was being threatened to go off course and slip backwards. The entire country is plagued with uncertainty and there’s nothing worse for a bounce-back than potential trouble.
So with 800,000 government workers out of work for the time being, there were bound to be about 30% of them who would end up being behind on their mortgage payments. And that brings with it a whole host of problems that you can imagine.
So the FHA (or whoever is still working there during the shutdown) came out with a pretty clear statement. They asked every lender out there to take into consideration the financial hardship that this shutdown is having on people and “make every effort” to extend unofficial forbearance on loans and mortgages.
That’s a pretty great step in the right direction. Cut the red tape and think of the people. Skip the credit reporting and the legal action and realize that homeowners are suffering.
I hope the banks out there take the FHA seriously and keep the housing recovery on track, avoid further embarrassing our nation, and focus on helping people.
Give them a round of applause and let’s keep up the pressure on Washington.