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Article Directory » Finance » Real Estate
| How To Avoid Foreclosure & The New Housing Rescue Bill |
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| Written by Alfred Sant |
| Thursday, 02 October 2008 13:44 |
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In July of this year, President Bush signed a new program that is supposed to help many homeowners to avoid foreclosure and stay in their homes. In the last few weeks I have received many e-mails from subscribers asking me about this new Help Release Program. They want to know if this program is going to help them and how will it work?
In July of this year, President Bush signed a new program that is supposed to help many homeowners to avoid foreclosure and stay in their homes. In the last few weeks I have received many e-mails from subscribers asking me about this new Help Release Program. They want to know if this program is going to help them and how will it work? As today, most homeowners do not understand how this Housing Program is going to help them to avoid foreclosure, if in fact is really going to do that, and if the Wall street Financial disaster that we are now facing, is going to have an effect the New Rescue Program. Homeowners want to know how will they qualify, requirements to be approved, and if they qualify, would be any string attach? Will be any in the small print, any surprises? The New Housing Rescue Law is expected to ease the struggling housing market and help homeowners to avoid foreclosure; but the reality is that this Bill is intended to bolster the Mortgage Finance giants Fannie Mae and Freddie Mac (this was developed before they had to be bail out by the Government) and not exactly to the majority of struggling homeowners in a direct way. The answer is yes to both questions. The homeowners who get to qualify and pass the vigorous scrutiny, and finally qualify for a FHA backed home Mortgage Loan ,in order to avoid foerclosure there are a lot of things that you need to be aware of, and you better read well because, as usual, it is very likely that you will not be explained with details all the strings that come attach along with this Rescue Law. And this financial crisis will indeed affect the Housing Bill. Homeowners, in many cases will be better off if they hold on to their homes for as long as they could, then letting it go to foreclosure, rent a house or apartment, and then when the home prices begin to go back up, start fresh and buy a new home with a better mortgage. To start; before homeowners can get a FHA backed mortgages, they have first to pay back any other debt, such a home equity loan or line of credit they may have in their property, and they will not be able to take another home equity loan for at least five years. This program is voluntary for the Lenders that actually own your loan, so they first have to agree to rework the actual loan before anything could get started. The Bill requires Banks to make mayor concessions, reducing the value of the loan to 90% of its actual value. In areas with high foreclosure rates where home prices have dropped by as much as 45%, it will mean a significant loss for the Banks. With the Financial crisis, which this Country is facing at this moment, the hight rate of foreclosure and the necessity of cash that most Banks actually have, it will not be a big problem for the banks to accept 80% or 90% of the current apprised value of the property, but there are many other issues engaged in this matter. Banks will not sign off on a deal unless they think that they will lose less money on that than they would by letting a house to go through the expensive foreclosure procedure. In this regard there are many aspects that need to be considered in like; Will Fanny maid or Freddy Mac have the money available, or if potential new buyer will be financed, if they decide to foreclose you and then sell the property in the market. What does it cost? There is a predetermined up front cash cost for borrowers to bear. What is the catch? In fact the refinanced loans do come with many strings attach, so the homeowners who are facing foreclosure must understand what they are getting into, since it is not as simple as the Government want us to believe. In my website I explain everything you need to know in details as well as what you should do, and if you will or will not qualify for this program. About the Author: If You Want To Learn More About This Topic And For Tips And Proven Techniques And Strategies On How To Avoid Foreclosure And Stay In Your House For Over A Year And A Half Without Making Any Monthly Mortgage Payments Visit My Website: www.YouStayHome.com |