The federal programs currently in place to help struggling homeowners will continue to have minimal effect on the foreclosure crisis unless significant changes are made.

For starters, principle reduction for underwater mortgages or qualifying hardships, like permanent disability or the death of a spouse, would help many people nationwide stay in their homes. The Federal Housing Administration (F.H.A.) requires lenders to provide matching funds to utilize the current version of that program. As a result few lenders participate. If matching funds were no longer a requirement, qualified borrowers could take advantage of that program.

Full story is available on The New York Times

Don’t look now, but President Obama has another mortgage plan for Peoria.

Remember this is a guy who turned a government-backed plan called Hope Now into something its applicants soon called “Nope, Now.”

But there he was promising another mortgage fix. Under the rough terms he outlined in his State of the Union address on Tuesday night, the president offered a program that would allow borrowers in good standing to refinance at record low rates — “no more red tape, no more runarounds from the banks.”

Full story is available on MarketWatch

Two new initiatives from President Obama to address the foreclosure crisis — more help for struggling homeowners and aggressive investigations of financial firms — face significant hurdles as the nation’s real estate troubles linger in a volatile election year.

A new refinancing plan that expands on an existing initiative would allow homeowners who are current on their mortgage payments to retool their loans and save as much as $3,000 a year on payments.

Full story is available on LosAngelesTimes

Compared to other states, homeowner’s associations in Texas wield a lot of power.

Enough power, in fact, to take away your home without much effort. But now, that’s all changing.

As of this month, there’s a new law on the books designed to protect homeowners from foreclosure if they fall behind on their HOA payments.

Full story is available on NewsChannel10

About 8,800 homes are in some form of foreclosure in New Mexico.

The system has become so bogged down, that homeowners have a tough time figuring out where they are in the process.

Now some state lawmakers, the Attorney General’s Office and advocates for homeowners are introducing legislation that would help these people negotiate the maze.

Full story is available on krqe.com

When choosing a mortgage for the purchase of a home, borrowers should consider the added benefit of having an FHA assumable mortgages which is not offered with regular conforming mortgages. This little often overlooked detail can help to sell the home at some point in the future when real estate market conditions change and FHA mortgage rates may be higher.

While most mortgages must be paid in full when a property is sold, FHA mortgages can be assumable by a qualified buyer. This means that the buyer can take over the FHA mortgage at the original FHA mortgage rates. The FHA assumable mortgage is only valid for a borrower who plans to occupy the property since this benefit is not offered to investors.

Full story is available on FreerateUpdate

A new home refinance program was proposed during President Barack Obama‘s State of the Union address on Tuesday night that would impact borrowers with privately-held mortgages. The program was among many economic topics addressed in the speech, including income and tax equality, payroll tax cuts and the need for a united Congress.

Last night, Obama addressed the union in a speech lasting slightly over one hour long. In it, he discussed a number of economic issues, including the need to help troubled homeowners get back on their feet.

Full story is available on GoBankingRates

Wells Fargo & Company is launching a new program that will work alongside nonprofit organizations to help potential homebuyers in Los Angeles.

Neighborhood LIFT is getting its start in Los Angeles, where the company will help the city combat its high inventory of unsold homes by attracting prospective buyers.

Full story is available on CBSLocal

The following is a statement by National Association of Realtors® President Moe Veissi:

“The National Association of Realtors® commends President Obama for his remarks in support of homeowners and the struggling housing market during tonight’s State of the Union address. As leading advocates for homeownership, Realtors® know that restoring the health of the housing market is the only way to achieve a broader economic recovery.

Full story is available on RealEstateRama

No metro areas west of El Paso, Texas, earned a spot among the top 10 U.S. hot spots with the highest year-over-year hikes in median list price during 2011. Another Texas metro, San Antonio, ranked fifth on the list, based on data provided by online real estate portal Realtor.com.

Full story is available on inman.com