This Housing Bill says it will help and estimated 400,000 homeowners between now and 2011. There will be over 2,000,000 homeowners go into foreclosure in 2008 and 2,500,000 or more in 2009. We can help you no matter your credit and we CAN HELP NOW.
With the Homeowners Act of 2008 three things must happen:
- You must have good enough credit to qualify
- Your Bank must Participate
- You share your equity with the Government and pay costly refinance fees.
You may qualify for a Loan Modification regardless of your credit or past circumstances Click Here to find out More
Read more about the Homeowners Act of 2008 below:
Q: What exactly will the legislation do?
A: It will allow those who have a high enough credit score to qualify to cancel their old mortgage loans and replace them with 30-year fixed-rate loans for up to 90 percent of the home's current value. The bill goes into effect October 1, 2008, but will probably not be operational until 2009. The FHA will insure a total of $300 billion of the loans over a three-year period.
The decision on whether to write such a loan remains up to banks and is totally voluntary. The bank would have to be willing to take a loss on the existing loan in exchange for avoiding an often-costly foreclosure.
Q: Who is eligible?
A: Eligible borrowers must have spent more than 31 percent of their monthly incomes on their mortgages as of March 1, 2008. The troubled loan must have originated no later than Jan. 1, 2008, and be on the borrower's primary residence. And the borrower's income must be verified. Regardless of your loan date you are eligbile for a loan modification click here for a free evaluation.
Q: When does the program start?
A: It takes effect Oct. 1, 2008 and runs through September 2011, although the FHA isn't likely to have it operating at full capacity until 2009. You can do a loan modification now.
Q: Since lenders can pick and choose which loans to refinance, how can consumers determine if theirs will be selected?
A: Check with the bank or financial company servicing your mortgage, but it may be weeks before they make decisions concerning the new guidelines and assess individual loans.
Even then, keep expectations limited. "Servicers are going to be reluctant to take the government up on their offer," predicted Mark Zandi, chief economist at Moody's Economy.com. "The earliest they'll start taking them up on it is early next year. And even then it's likely to be modest."
Q: Is there anything a homeowner can do to improve chances of benefiting from the program, such as crunching numbers to make a case for the bank?
A: Not really. The best step is to keep up your payments as best you can.
Q: But doesn't this provide an incentive to NOT pay your mortgage, if you're barely keeping ahead of bills and are underwater on your house, so you can qualify?
A: No. If your situation deteriorates enough, the bank may reject any possible new loan. "Turning yourself into a financial basket case is not going to work," said Dan Seiver, a finance professor at San Diego State University. "If you turn into a complete deadbeat, the servicer is going to just foreclose and dump it."
You can qualify for a Loan Modification even if you are behind on your payments regardless of your credit or past circumstances Click Here to find out More
Q: If the banks and lenders refuse to write these loans, then what?
A: Public and political pressure may prompt them to participate. If not, and more people continue to lose their homes, Zandi says the next White House administration subject them to additional regulations or investigations if they remain unwilling to take on the risks.
Q: What happens if I'm able to sell my home after I refinance?
A: If you sell during the next five years, you must agree to share 50 percent of any profits from the resale with the government. What's more, homeowners can only retain equity gains based on a sliding scale. The homeowner would have zero equity from a sale in the first year, with the amount rising 10 percent in each succeeding year and capping at 50 percent from a sale in year five and thereafter.
The equity must be repaid because the maximum amount on the new loans will be capped at 90 percent of the current market value, which automatically gives the previously troubled homeowner 10 percent equity in the home.
In essence if you have had a live event or hardship such as loss of job and are trying to keep your home, not just "you got stuck in the bubble" and now need help, then we are for the rest of the 2,000,000 plus homeowners that will be facing foreclosure this year.
We want to help you stop foreclosure, save your home from foreclosure, stop the bill collecting calls or help you get out from under the burden of your mortgage if you can no longer afford your home. Letting us work with your lender and get renegotiate your loan with your lender it is much less expensive and not based on your credit like the Hope for Homeowners Act of 2008.
