President Obama's plan to help stem the flood of foreclosures has two components.
1) Refinancing to lower interest rates
WHO QUALIFIES?
- Did you obtain your mortgage before 1/1/2009?
- Do you owe less than 105% of the value of your home?
- in other words, if you owe $105,000, the value of your home must be at least $100,000.
- You must be current on your mortgage.
- It must be a Fannie Mae or Freddie Mac loan
Until now, someone in this position could not refinance to take advantage of lower rates, but this will help some. Will it help those where the homes have fallen 38% value, as they have in Orange County, California? No. Will it help those who have loans that are not with Fannie Mae or Freddie Mac.
Hopefully this will help some, but I fear it will leave many without a solution.
2) Loan Modification
WHO QUALIFIES?
- Homeowners in default (not making their mortgage payments).
- Homeowners whose lenders voluntarily agree to lower a borrower's payment so it's no more than 38% of their income.
HOMEOWNER INCENTIVES:
- Lower payments
- Keep their home
- $1,000/ year incentive for five years from the government if they stay current on their mortgage
LENDER INCENTIVES:
- Reduced number of non-performing assets
- $1,000 to lender from government upon modificatin and $1,000 per year for the next 3 years if the loan stays current.
Again, I fear there are a limited number of people who will be helped by this program, but I fear it won't help many of those who are struggling and not making their mortgage payment.
Click to learn about additional options when you can't pay your mortgage or Is Your Home Fading Away?
*****************************************************************************
About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.
For more information on Costa Mesa homes or the value of a particular home please visit Costa Mesa home values
Click for a free list of Orange County foreclosures or a free list of Orange County short sales or e-mail Me!
Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? Contact me at christine@donovanblatt.com or 714-319-9751 to discuss your options.
Want to buy a home or to list your property for sale in Newport Beach, Costa Mesa, Huntington Beach or Orange County? Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.
Click Orange County homes for sale to view all OC homes for sale.
Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.
Copyright © 2009 by Christine Donovan, All Rights Reserved. Obama's Foreclosure Prevention Plan - Who Will It Help?
***************************************************************************
About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.
Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? For more information see Options to Foreclosures, understanding short sales or contact me at christine@donovanblatt.com to discuss your options.
If you want to buy a home or to list your property for sale, please click Newport Beach homes, Costa Mesa homes, Huntington Beach homes or Orange County homes. Click the link if you are interested in buying a home at a courthouse auction sale.
Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.
Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.
Federal Government Disclaimer (MARS)
- You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject or accept the offer, you do not have to pay us.
- Christine Donovan, DonovanBlatt and Donovan Group are not associated with the government, and our service is not approved by the government or your lender; and
- Even if you accept this offer and use our service, your lender may not agree to change your loan.
Click Orange County homes for sale to view all OC homes for sale.
