Eddie Perez

The government set expectations too high earlier this year when President Barack Obama launched an effort to help up 7 to 9 million homeowners avoid foreclosure.

Now, reality is setting in. The effort, named Making Home Affordable, appears on pace to make a far smaller impact on the foreclosure crisis than officials had anticipated.

Meanwhile, foreclosures remain extremely high. More than 358,000 foreclosure-related filings were recorded in August, RealtyTrac Inc. reported Thursday. That number was up 18 percent from a year ago and flat from a month earlier.

Following are a few questions and answers about the status of the foreclosure-relief plan.

How many borrowers have been helped by the government programs so far?

As of last month, more than 360,000 borrowers were enrolled in three-month trial loan modifications, out of about 570,000 who received offers. Only about 85,000 homeowners have had their loans refinanced under the Obama plan.

What’s the difference between a refinanced loan and a modification?

When you refinance your home loan, you sign a new contract with your lender. A loan modification involves changes to the existing contract such as lowering the interest rate or extending the term from 30 years to 40.

Why has progress on loan modifications been so sluggish?

The program requires big changes for the mortgage industry. Modifying thousands of loans is much more complicated than collecting payments from borrowers who pay their bills on time. It means hiring and training thousands of workers to handle calls, and reworking computer systems. Plus, the government has changed and expanded the program several times.

Is the Obama administration planning any big changes?

It’s not clear. But industry executives say they want to work on a possible extension of the program to unemployed homeowners. One way to do so would be to give those borrowers a temporary break on loan payments while they look for a new job.

What should I do if I’m having trouble getting help with my mortgage?

If you can’t resolve your problems or you think your mortgage servicer is violating your rights, contact a nonprofit housing counselor or seek legal help. Housing counselors will help negotiate a loan modification for free. Be wary of loan modification consultants that offer to re-negotiate your mortgage in exchange for an upfront fee.

If you want to know whether you qualify for a loan modification, check out the government’s Web site, www.makinghomeaffordable.gov. To find a housing counselor, try NeighborWorks America’s site at

The Federal Deposit Insurance Corp. (FDIC) is encouraging companiesthat buy failed banks with troubled home loans to extend temporary help to people who have lost their jobs and can’t pay their mortgage bills.

Under the FDIC’s recommendations, borrowers’ monthly payments would be reduced for at least six months. The aid would apply to borrowers who have lost their jobs or those who have faced a drop in salary.

“With more Americans suffering through unemployment or cuts in their paychecks, we believe it is crucial to offer a helping hand to avoid unnecessary and costly foreclosures,” FDIC Chairman Sheila Bair said in a statement Friday.

The plan would apply to buyers of deposits and assets of failed institutions that sign loss-sharing agreements with the FDIC.

The agency in recent months has signed about 50 such agreements with those banks, under which it has agreed to take on most of the risk on about $80 billion in loans and other assets.

If you are facing unemployment and you are worried about the possibility of falling behind in your home payments, contact Eddie Perez Broker-REALTOR, CDPE, to find out all the benefits and options to prevent foreclosure. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City. He can be reached at eddie@InvestHoboken.com or 201-344-2886.

Consumers and businesses went on a big-ticket spending spree in July,sending home, car and equipment sales soaring by the largest amount in years.

The sales, detailed in two recent government reports confirmed a subtle but shift in confidence about the economy. New home sales jumped almost 10 percent from June, while orders for long-lasting goods like appliances, planes and computers rose nearly 5 percent in July, the third increase in the past four months.

It remains unclear whether the growth can be sustained. Though the increases in housing sales and manufacturing last month were dramatic, they came from extraordinarily low levels and were fueled by temporary government programs like Cash for Clunkers and tax credits for home sales.

Most economists now agree the recession that began in December 2007 has ended or is ending. Some say the economy is poised to grow strongly in the July-September quarter, but will probably show weaker growth after government stimulus spending tapers off.

Sales of new homes surged to a seasonally adjusted pace of 433,000 in July from 395,000 in June, the Commerce Department said, providing another sign the housing market is bouncing back from the historic bottom reached early this year. Driven by falling prices, the fourth-straight monthly increase was greater than expected.

While sales are still off nearly 70 percent from the incredible peak four years ago, they are still up more than 30 percent from the bottom in January — a big relief after a long decline.

The improved outlook could help further boost the economy. As home sales rise, builders will gradually need to hire more workers to pour foundations and pave roads, reversing the trend that saw 1.4 million industry jobs shed since the recession began.

Much like Cash for Clunkers, homebuyers are rushing to take advantage of a federal tax credit that covers 10 percent of the home price, or up to $8,000, for first-time owners. Home sales must be completed by the end of November for buyers to qualify.

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Allow me to help you find the home of your dreams Contact Eddie Perez at (201) 344-2886, www.investhoboken.com.