According to Bush signs housing bill to provide mortgage relief by Jennifer Loven the housing bill to help homeowners will take effect in Oct. of this year. The program won't be worked out until 2009. This isn't a solution. This is just a hope. Try not to get your hopes up.
The bill says it will allow FHA to buy loans from lenders if your lender will work with them. There is no guarantee your lender will take this route. If they find it more profitable to foreclose on you, then you are still in the same predicament. The banks actually have to pay to do
this and on top of the fee they pay, they also have to be willing to take 90% of your home's fair market value at the time of the refinance. The bill goes on to say that this is a refinance so credit will be checked and income verified. In other words the only thing that you can be late on is your primary residence that is being refinanced. You still have to have good credit.
Most people facing foreclosure are late on other bills as well as their mortgage. This "solution" might not do anything for you but you will have a chance to hope. Of course we could all hope to win the lottery but only a small few of us will and it may be people who really don't NEED it.
There are certain rules for homeowners. They can only ask about this option if their loan was taken out or financed between 2005 and 2008. Homeowners can't have lines of credit or home equity loans that are attached to their property. This program is only for people who have one loan on their property and the bank will allow FHA to buy the loan. If the lender agrees to do this your debt as the homeowner to that lender will be paid in full.
There are also other provisions such as paying FHA a certain percentage of any profit from the sale of your home. The only ones benefiting is FHA. FHA will take 100% of the profit if you sell your home in the first year. Each year the percentage goes down 10% until the fifth year when you only owe FHA 50% of the profits where the percentage rate will stay. So think twice about your home. If you were buying your home as an investment in your future take the refinance deal just so you don't ruin your credit and then sell your house immediately.
The bill says it will allow FHA to buy loans from lenders if your lender will work with them. There is no guarantee your lender will take this route. If they find it more profitable to foreclose on you, then you are still in the same predicament. The banks actually have to pay to do
Most people facing foreclosure are late on other bills as well as their mortgage. This "solution" might not do anything for you but you will have a chance to hope. Of course we could all hope to win the lottery but only a small few of us will and it may be people who really don't NEED it.
There are certain rules for homeowners. They can only ask about this option if their loan was taken out or financed between 2005 and 2008. Homeowners can't have lines of credit or home equity loans that are attached to their property. This program is only for people who have one loan on their property and the bank will allow FHA to buy the loan. If the lender agrees to do this your debt as the homeowner to that lender will be paid in full.
There are also other provisions such as paying FHA a certain percentage of any profit from the sale of your home. The only ones benefiting is FHA. FHA will take 100% of the profit if you sell your home in the first year. Each year the percentage goes down 10% until the fifth year when you only owe FHA 50% of the profits where the percentage rate will stay. So think twice about your home. If you were buying your home as an investment in your future take the refinance deal just so you don't ruin your credit and then sell your house immediately.
Your LTV is determined by dividing the amount of your loan by the value of your home. The number that results from this calculation is expressed in a percentage and used to determine the amount of risk involved for a lender in financing your mortgage.
By jmopp | Published 4/27/2006 | Read more »
If you own a home, you have probably been inundated - especially if it's a holiday - with offers to refinance your home. As a former mortgage consultant, I'm the lone wolf crying, "Don't!" - especially during a holiday. Why? Read on.
By Yuwanda Black | Published 6/5/2006 | Read more »
In response to the growing subprime mortgage crisis, the U.S. Conference of Mayors called on the Federal Reserve Board for remedies this week.
By Bruno Somerset | Published 8/19/2007 | Read more »
With the Mortgage crisis in full swing, many homeowners are literally battering down the hatchets and staying put. Is Now really time to be selling your property if you expect to make any sort of profit? People are scared they may actually lose money.
By Julie | Published 9/14/2007 | Read more »
With foreclosures, bank owned property sales and auctions on the rise this is only the beginning of a sign of a major mortgage crisis. There are also lenders who are filing for bankruptcy and going out of business.
By Handsworth | Published 9/20/2007 | Read more »
Speaker of the House Nancy Pelosi and Senate Majority Leader Harry Reid sent a letter to President Bush this morning asking him to address the Subprime Mortgage Crisis. Foreclosures are more than double what they were a year ago.
By alex cruden | Published 10/4/2007 | Read more »
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Louisa364
Posted on 08/04/2008 at 6:08:43 PM