Obama's administration came out with a new website for home owners struggling to make mortgage payments and facing foreclosure:
MakingHomeAffordable.gov
From the about page:
The Obama Administration has introduced a comprehensive Financial Stability Plan to address the key problems at the heart of the current crisis and get our economy back on track. A critical piece of that effort is Making Home Affordable, a plan to stabilize our housing market and help up to 7 to 9 million Americans reduce their monthly mortgage payments to more affordable levels.
The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments. The Home Affordable Modification Program commits $75 billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures.
I like how they are taking the "self-assessment" approach and give you a way to see which program will work for your situation. There are basically two programs: Refinancing and Loan Modification.
Besides the questionnaires, there are many other resources: a couple of videos, links, and information on foreclosure prevention, foreclosure counseling agencies and contact information for major lenders.
2 comments:
I have a friend that recieved help from this program.
Affordibilty = LOWER PRICES
And the only way you can do that is to continue to let home values FALL. That's right. Home calues are STILL TOO HIGH. They have not fallen enough!
This is another example of government interferance in the marketplace. You let home prices fall. You dont artifically prop them up to allow deadbeats stay in a home they never deserved in the first place (even if they are 50 year mortgage debt slave).
Your friend doesnt "deserve" to own a home. People dont "deserve" to own homes. However if home prices were like they were relative to salry as in the 1960's - 1970's. almost EVERYONE would be able to afford a home.
My Grandma bought her home for $20,000 in 1974 on less than 1:1 income ratio and sold it for $750,000 in 2005 on an local average 12:1 income ratio.
PRICES MUST FALL.
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