Lenders and borrowers alike are being hit in every direction by the impact of the crisis. The recession makes it tougher for people to pay their mortgages, and the continuous drop of home prices have left many borrowers ‘underwater’, putting them in the position of owing more than the value of their properties, unable to sell or refinance their way out of trouble.
A lot of homeowners with mortgages are now behind in mortgage payments, even some are facing foreclosure. The government under President Obama is doing its part to curb the crisis with the $ 75 Billion “Foreclosure Bailout Plan” which aims to help millions of homeowners who are about to lose their homes refinance their mortgages. The mortgage bailout plan will allow 4 to 5 million homeowners refinance their homes. The $ 75 billion the President allocated will fund the reduction of monthly payments of home owners.
It is estimated that 2.2 million homes will be foreclosed this 2009 alone and not all of which will qualify for the plan because in order to qualify for Obama’s new refinance plan, your loan to value (LTV), cannot be any higher than 105%.
So, if the value of your home is $ 500,000, your loan cannot be any higher than $ 525,000 (5% higher than the current market value). So that eliminates pretty much everyone who bought a home in 2004 – 2008.
For those who will not qualify for the plan, the options would either be to short sell, foreclose, or apply for a modification with their lenders. If you chose to short sell or foreclose, either way you would incur losses. The best way is to get a modification on your loan so that you may be able to save your house, update your mortgage payments, regain financial stability, and most of all get relief from the impact of the crisis the recession is causing.
Apply for a loan modification with the help of professionals who knows more about the system and can negotiate effectively with lenders on your behalf.
Remember, it’s better to get rid of the problem before it’s too late. Act now! Call us.
Pushback on foreclosure protection bill
BOSTON (State House News Service) – Homeowners facing foreclosure should have a day in court before banks cast them out of their homes, advocates argued Wednesday, calling on lawmakers to make Massachusetts the last New England state that requires …
Read more on WWLP 22News
A bit of humor...
Powered By WPHumor
Please Note... All links within articles are placed by their author-owners and not by this blog.Products with in those links may or may not be the best in the world.If it sounds too good to be true it could be a scam.Articles are posted for their info,ideas and or entertainment value only.
Powered By WP Footer
