The Federal Housing Administration (FHA) has homes that it financially “backs up” called HUD homes. These special homes are foreclosed homes listed on foreclosure listings and are one step away from being taken away from one family and put up on the market. This sounds simple, but it is also very heartbreaking. A family works very hard and in the end, they lose their home anyway. That can be devastating, especially if that family has had that home for perhaps generations. How would anyone feel if they work one or two jobs and still cannot meet that big mortgage payment, and the place they call their home gets taken out from under them? This very sad situation is exactly what the Distressed Asset Stabilization Program is all about, giving hard working people a way to keep their homes without the badgering and horrific treatment from a mortgage company.
The Distressed Asset Stabilization Program was developed to make it possible for home owners to keep their homes. The economy is tough all over and mortgage companies are taking houses away at an alarming rate. With the Distressed Asset Stabilization Program someone other than a mortgage company will be able to buy the delinquent loan and together with the actual owner of the home, find a way to work together so that the home is saved. So, between this private company and the home owner, a delinquent loan will become current and in the end a home stays with the family that has put so much work into it.