While President Obama and his team have continued to take heat on their lack of Foreclosure prevention, they've propsed a new plan to shrink some home loans for current homeowners.
With the existing $75 billion foreclosure-prevention program, the Obama Administration hopes to utilize approximately $14 billion to help get new loans backed by the Federal Housing Administration, for homeowners who owe more on their mortgages than their properties are worth. The Federal Housing Administration is a government agency which insures home loans against default for its lenders. In addition, the new plan calls for current lenders on these mortgages to receive incentives to lower the homeowners principal balance.
However, the government warns that this plan isn't going to be able to help everyone. A Treasury Department document said, “investors and speculators should not be protected under our efforts, nor should Americans living in million dollar homes or defaulters on vacation homes.” It is estimated that the new plan could help between 1 million and 1.5 million homeowners avoid foreclosure.
According to Alan Zibel, Associated Press real estate writer, "The four big holders of second mortgages – Citigroup Inc., Bank of America Corp., Wells Fargo & Co. and JPMorgan Chase & Co. – have now joined the government’s program to modify second mortgages. That program was delayed for months but with Citi on board, the major players in the industry are now on board."
How does this affect you, as a Tampa Realtor, Tampa resident, or Tampa property owner? Well as a resident or property owner you'll now be able to try and seek out this added assistance if you're carrying an upside-down mortgage. As a local Realtor, this may give your clients who were considering a Short Sale an opportunity to remain in their homes with the reduction in their payments, and hopefully avoid Foreclosure for them.
Comments
I can understand not helping with 2nd homes (vacation homes), but if their past lifestyle afforded them a luxury home and the American economy caused a sudden downturn for them financially, they still deserve help until they can once again afford their lifestyle that at some point they worked very hard for.
I think it's a great idea and hopefully it will help the people who truly want to pay their mortgage on time but can't. Not people who are greedy and just want a bigger house for less money.
Down with Osama, Obama, socialist prick.
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