How To Stop Foreclosure & The New Housing Rescue Law
In an effort to help struggling homeowners to avoid foreclosure and stay in their homes, a Housing Rescue Bill was passed by congress and signed by President Bush, in July of this year. In the last few weeks many of my e-newsletter subscribers have asked me about this Rescue Law Program. They want to know how this program works, and if indeed is going to really help them.
Homeowners want to know how this program is going to work for them to avoid foreclosure and if the financial crisis that Wall Street is facing now is going to affect this program. They want to know who will qualify, how to get help, and if the help will come with restrictions or any kind of strings?
In short, this Bill was created to offer relief to the stressed housing market that we are facing right now and help homeowners to avoid foreclosure; But the fact is that the Bill offered direct relief to the mortgage giants Fannie Mae and Freddie Mac (of course that was before those giants had to be bailout by the Government), and in turn that would provide indirect assistance to the homeowners facing foreclosure.
And yes, if, and it is a big IF, but if you get to qualify and pass the vigorous scrutiny, and finally get approved 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 agreement.
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 is a voluntary program, so lenders holding the original mortgage have to agree to rework a given loan before things can get started. The bill requires lenders to make major concessions, writing down the value of the loan to 90% of the current value of the house. In areas with high foreclosure rates where prices have plummeted by as much as 40%, that will mean a substantial loss for the lender.
With the financial crisis that we as a Country are facing at this time, the hight rate of foreclosure and the pressing need of cash that most Lenders have, I do not believe it would be a big dilemma for the Lenders to accept 85% to 90% of the actual appraised home value, but there are other things involve in this.
The fact is that the lenders will not sign off on a exercise unless they are sure that they will lose less money on that than they would by allowing a house to go through the costly foreclosure procedure. In this case there are many factor that need to be taken into consideration like; Will Fanny maid or Freddy Mac have the financing cash available at the moment, or if a probable new buyer will find credit, if they decide to finally foreclose your property and then sell the property in the market or in an home auction.
There is a predetermined up front cash cost for borrowers to bear, and In fact the refinanced mortgages loans do come with many strings attach, so the homeowners who are facing foreclosure must be aware of what they are getting into, since it is not as simple as we may be bound 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 Rescue Law Bill.
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 Home For Over A Year And A Half Without Making Mortgages Payments At All Visit My Website: www.YouStayHome.com
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