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In an effort to boost sales of its REO properties, Fannie Mae said it would help pay for closing costs for qualified home buyers. Home buyers will receive up to 3.5% of the sales price for closing costs on a property they will live in as their primary residence. The aid can also go towards a home warranty, if necessary.

What’s interesting about this deal plan is that real estate agents and brokers can also qualify for a bonus. Selling agents representing owner-occupants can receive a $1,500 bonus.

The incentive program is for properties listed on www.HomePath.com, Fannie Mae’s REO Web site. The deal is good for offers submitted on or after Sept. 23, 2010, and that close by Dec. 31, 2010. To qualify for the program, the home sale must close within 60 days of the offer being accepted.

More families are ending up in homeless shelters because they can’t make it in this economy. From 2007 to 2009 the number of families in homeless shelters rose to 170,000 from 131,000, according to the Department of Housing and Urban Development (HUD).

Unemployment is obviously a huge factor when it comes to families becoming homeless. The New York Times checked with several major homeless shelters around the U.S. and found that there continues to be a rise in the number of families seeking assistance.

The article stated, “The Y.W.C.A. Family Center in Columbus, Ohio, one of the largest family shelters in the state, has seen an occupancy increase of more than 20 percent over the last three months compared with the same period last year. The UMOM New Day Center in Phoenix, the largest family shelter in Arizona, has had a more than 30 percent increase in families calling for shelter over the last few months.”

While the government has given out some aid to help struggling families remain in their homes, sometimes there is nothing people can do if they’ve lost their source of income and can’t pay their bills.

No one can predict a job loss, sudden illness, or other turn of events that can lead to a loss of income and, subsequently, homelessness. But if you are struggling to make mortgage payments and other bills, try to get help before things escalate to far.

If you own a home, talk to your bank about why you are having a tough time paying your mortgage. Your mortgage lender may be able to help you set up a different payment plan or refinance. A housing counselor may be able to fill you in on various programs that might be able to help you get through financial difficulties. Whatever the situation may be, look for help before your financial problems become too big to solve so you don’t end up in foreclosure, bankrupt, or homeless.

The Joint Center for Housing Studies at Harvard University recently released its State of the National Housing 2010 report and found that 40.3 million households spend more than 30% of their incomes on housing in 2008, and 18.6 million spend more than half their incomes on housing. 

The report also found that one in seven homeowners owed more on their mortgages than their homes were worth.  While the government has tried to stem the tide of foreclosures and assist some homeowners, many people who are underwater on mortgages loans have not been helped for a variety of reasons. According to the report:

As of April 2010,  HAMP [Home Affordable Modification Program] had made 1.5 million offers that resulted in 637,000 currently active rial modifications and about 295,000 permanent ones. But even among those households able to qualify for this reduction in payments, the Treasury Department estimates that 40 percent will re-default.

Despite problems in the housing market, demand for housing rose in 2010, helped by many first-time home buyers claiming the governments tax credit 45% of home sales were to first-time buyers. Some repeat home buyers also took advantage of an expanded tax credit to purchase homes.

The housing report states that the housing recover is still at risk: 

In addition to the expiration of the homebuyer tax credit program, which may have temporarily jacked up home sales, the market faces threats from the severe overhang of vacant units, still high unemployment, and record numbers of owners with homes worth less than the amount owed on their mortgages.

You can read more about the housing report here.