Sunday, March 08 2009
Plans are in work to help home owners in distress to keep their homes and refinance the mortgage. As with any government assistance program certain conditions must apply. The loans must be through Fannie Mae or Freddie Mac, home owners must live in the property and tax returns have to be filed.
Please call me at 812-499-9234 for further information on this matter.
New home foreclosure plan revealed
VANDERBURGH COUNTY, IN (WFIE) - While many homeowners across the nation simply can't keep up with their mortgage payments right now, the Obama administration unveiled a new plan to try to help get them back on track and avoid future foreclosures.
As more for sale signs pop up across the Tri-State and the country, the government spells out its plan to keep people in their homes.
Washington's answer: a $75 billion plan to offer homeowners in danger of foreclosure the chance to refinance at a better fixed rate and lower their payments.
"If keeping current with their mortgage has put stress on being able to make car payments, insurance and credit card payments, by having a reduced payment with their mortgage it could help them stay on track with other lenders," Heritage Federal Credit Union President Ruth Gaon said.
In order to refinance under the plan, loans must be through Fannie Mae or Freddie Mac.
Some interest rates could drop as low as two percent.
Certain qualifications such as living in the property and disclosing tax returns must be met first.
While it may seem like a good idea on paper, Gaon said modified loans could backfire.
"If someone has had hours cut, but are still employed, a reduced payment is beneficial," Goan said. "But someone is unemployed with no prospects of employment, a modified payment will still become past due again."
For Evansville resident Jack Weatherholt, only time will tell if the new plan will work, but he says it might have saved his next door neighbors from foreclosing six months ago.
"Probably had too much of a mortgage, don't know if another broker took over, just in over their heads," Weatherholt said.
The loan modification program will last through the end of 2012, but loans can only be adjusted one time.