Still looking for ways to cauterize the nationwide foreclosure crisis, the Barack Obama-led administration today announced another plan aimed at keeping roofs over the heads of unemployed homeowners. The latest effort is available to out-of-work homeowners who have FHA-insured loans, which is about 3,500 borrowers a month, according to the Los Angeles Times.

To put that into more perspective, the report indicates that “only 10% of some 50 million mortgage loans outstanding nationwide are backed by the FHA.”

The good news is that mortgage servicers who participate in the Home Affordable Modification Program (HAMP) will be required “whenever possible” to extend the program to distressed homeowners who qualify for the federal loan modification program, adding about another 1 million or more into the mix.

However, the HAMP candidates who qualify for the year-long forbearance could have the 12 missed payments tacked back onto their mortgage balance once they are on solid financial footing.

The report indicates that several “hurdles” are being lifted to qualify for the program, making it easier for unemployed homeowners to qualify for the assistance.

If you’re unemployed and would like to learn more about this latest foreclosure assistance program and others click here.

It’s no secret that the $75 billion government-sponsored loan modification program, Making Home Affordable, has fallen short of expectations since its introduction two years ago.

As of the end of Jan. 2011, there had been about 550,000 permanent modifications made nationwide, according to the January Housing Scorecard. That’s good news for some, but bad news for many when compared to the program’s original goal of preventing 3 million to 4 million foreclosures.

The Treasury Department recently admitted that the foreclosure prevention program will probably never attain the original goal that it set back in 2009.

Based on this lackluster performance, there is a movement among Republicans in the nation’s capital to put an end to Making Home Affordable, which they say would save about $1.4 billion and result in 100,000 fewer loan modifications subsidized by taxpayers, according to NASDAQ.com.

In fact, there is a bill currently on the table that would do just that and it is expected to be voted on later this week.

But White House officials are basically saying don’t waste your time because President Obama would never let that happen. Why?

Because Making Home Affordable “is still benefiting tens of thousands of borrowers every month” and it is “important to the nation’s sustained economic recovery.”

Stay tuned to see how this stalemate unfolds.

For ore information and details on the various foreclosure prevention programs offered under Making Home Affordable click here.

Information and acronym overload is just one of many ways to describe all the home-saving programs currently huddled under the federal government’s Making Home Affordable umbrella.

Finding out which program may be best for you, as well as whether or not you qualify for it, can be an overwhelming experience. And if you’re in a tight spot like many of your other neighbors, struggling to meet your monthly mortgage obligations, you’re already probably way past the point of being overwhelmed.

MarketWatch.com has compiled a very helpful list of the various foreclosure, loan modification and short sale programs that are available today.

We’ve shared the most important information below, as well as direct links to the various websites where you can gather more information and request/download all the information you need to remedy your situation as quickly as possible.

Check it out:

Home Affordable Refinance Program (HARP): If you are on time with your payments but cannot take advantage of today’s lower interest rates because you owe more than your home is currently worth, HARP can help if your loan is held by either Fannie Mae or Freddie Mac, the two mortgage giants that touch perhaps half of all loans.

Home Affordable Modification Program (HAMP): If you are struggling to make your payments because your income has been curtailed or your interest rate has increased, you may be eligible to have the terms of your loan changed. The amount you owe must be less than $729,250, your loan must have been taken out prior to Jan. 1, 2009, and your total monthly housing outlay — principal, interest, taxes, insurance and homeowner’s association dues — must be more than 31% of your current gross earnings.

Second Lien Modification Program (2MP): For owners who are having a tough time making their house payments because they have a second mortgage, this program offers a way to lower the payments on the junior loan when the primary mortgage is modified under HAMP. Under 2MP, which is meant to be complimentary to HAMP and is somewhat more complicated than the other alternatives, the owner of the second lien and the company administering the loan on its behalf are given monetary incentives to reduce your rate, extend the term or possibly even extinguish the loan altogether.

Home Affordable Foreclosure Alternatives Program (HAFA): This program is designed to streamline two popular options to foreclosure, a short sale (he loan servicer allows you to sell the property for less than what is owed) and a deed-in-lieu (you voluntarily transfer ownership to the servicer with the understanding that foreclosure proceedings will be dropped). If you can no longer afford your home but want to exit gracefully and avoid the negative effects of foreclosure, this short sale program offers up to a $3,000 cash stipend to help you transition into more affordable housing. To qualify, you cannot be eligible for a trial loan modification, fail to complete a successful trial mod, or miss two consecutive payments during the trial mod period.

To read the entire article about the foreclosure prevention programs mentioned above we strongly recommend that you read the entire article on MarketWatch.com. It also goes into fantastic details about all the documentation and paperwork that you will need to collect to set the process in motion.

Good luck!

That’s the prescription that Federal Deposit Insurance Corporation (FDIC) Chairman, Sheila C. Bair, recently issued to cure the ills of the current (and future) housing market.

Here’s a snip from her presentation before the Summit on Residential Mortgage Servicing for the 21st Century in Washington, D.C.:

“The bottom line is that we need more modifications and fewer foreclosures. When foreclosure is unavoidable, we need it to be done with all fairness to the borrower and in accordance with the law. Only by committing to these principles can we begin to move past the foreclosure crisis and rebuild confidence in our housing and mortgage markets.”

Bair elaborates, saying that a well-trained, adequately-compensated single points of contact are required on the servicer side of things who can work with distressed homeowners and provide them with every last opportunity to stay put.

Far too often “costly miscommunication” and misplaced paperwork gums up the foreclosure process, sending homes to the auction block and their inhabitants to the curb sooner than necessary.

It’s an idea that sounds just like Making Home Affordable, which is a $75 billion government-sponsored loan modification program that has “fallen short” of expectations since its introduction nearly two years ago.

Can, as Bair says, “enforceable requirements” in the loan modification program “significantly improve opportunities for homeowners to avoid foreclosure” or is it fundamentally flawed?

The Wales family will not be forced to vacate their home in Prince William County, Va., after its lender reversed its decision to foreclose, according to the Washington Post.

Mike and Kathy, the homeowners, were promised a loan modification earlier this month. But the paperwork never arrived and their lender went ahead and auctioned off the home instead.

It was a crushing turn of events, considering that the couple has to care for their ‘gravely ill’ 10-year-old son, Alex, who suffers from a rare neurogenetic disorder that has left him blind and unable to walk.

The good news is that once their trying story reached the press, the lender moved fast to fix its mistake. In fact, under terms of the deal, the Wales’ monthly mortgage payment will be reduced and the loan will be extended to 40 years.

Not a fairy tale ending, but a positive outcome nonetheless under what must be incredibly difficult circumstances.

It’s rather straightforward: If you don’t have a job, affording a mortgage is virtually impossible.

In fact, Barry Zigas, director of housing policy for the Consumer Federation of America, today tells the Christian Science Monitor that “the biggest single cause of foreclosure today is loss of income or employment-related issues.”

To treat the problem, and not the symptoms, the Obama administration pledged an additional $3 billion to support foreclosure prevention initiatives, extending beyond the current $75 billion “Making Home Affordable” loan modification program.

Here’s how the extra funds will be spread around:

“… the additional aid will go towards funding a new bridge-loan program for homeowners with reduced incomes in hard hit local areas, although those regions have not yet been specified. The program extends a no-interest loan of up to $50,000, which can last as long as 24 months, to assist homeowners with mortgage payments until they become financially stable.”

Previously, out-of-work homeowners received a three-month forbearance to find work and become eligible for a loan modification. However, with the average length of employment lasting up to 24 weeks (six months) more needed to be done.

The latest initiative is modeled after a successful program in Pennsylvania, which has helped about 45,000 distressed homeowners avoid foreclosure since 1983.

Forbes has compiled a list of the riskiest cities for homeowners, which have the highest percentage of borrowers who are at least three months late on their mortgage payments.

Check it out:

1. Las Vegas, Nevada
2. Riverside, California
3. Stockton, California
4. Modesto, California
5. Bakersfield, California
6. Vallejo, California
7. Orlando, Florida
8. Memphis, Tennessee
9. Miami, Florida
10. Fresno, California

“Sin City” has the dubious distinction of topping this list; however, California has six cities in the top 10, underscoring the distressing situation on the left coast.

The good news is that the “Golden State” recently pledged $700 million to prevent about 40,000 foreclosures. In fact, the program, “Keep Your Home,” is the nation’s “biggest principle reduction program,” trimming mortgages by up to $50,000 each.

If you are a struggling homeowner in California and want to learn more about whether or not you qualify for mortgage assistance click here. Those who want to view foreclosures in California — or anywhere else in the United States for that matter — should click here.

The foreclosure crisis has hit virtually the entire nation without discrimination; however, some states, collectively, have been impacted more than others.

Arizona, California, Florida, Michigan and Nevada, in fact, top the list of 50, sustaining average home price declines of 20 percent or more. As a result, the U.S. Treasury Department has earmarked $1.5 billion to “head off” foreclosures in these states, among other, according to Reuters.

It’s been dubbed the “Hardest Hit Fund,” which was announced back in February. And it was carved out of the $50 billion Home Affordable Modification Program (HAMP) to assist responsible homeowners who have “been affected by the economic crisis through no fault of their own.”

The five states submitted proposals, demonstrating that their residents needed the housing assistance, which were all approved.

Here’s the monetary breakdown:

Arizona will get up to $125.1 million for these purposes while California gets up to $699.6 million and Florida up to $418 million. Michigan has been approved for up to $154.5 million of funding and Nevada up to $102.8 million.

In addition to the five states already mentioned, North Carolina, Ohio, Oregon, Rhode Island and South Carolina have submitted proposals for similar assistance. It’s expected that they, too, will receive approval “in coming weeks.”

Government officials reportedly expect to help 90,000 or more homeowners with its “Hardest Hit Fund.” For more information on the program, as well as the complete “Making Home Affordable” initiative, click here.