Foreclosure Help - The bill that will allow the FHA to write another $300 Billion in mortgages for for homeowners facing foreclosure, hit a snag over a package of proposed tax cuts for renewable energy was introduced.
With the foreclosure help support from both Democrats and Republicans, it seems unlikely that the bill will not go through. The tax cuts proposed also have the support of both parties, but the Democrats favor a tax increase in other areas to offset the tax breaks. The details of this have not been worked out, and hopefully will not stand in the way of this relief package.
According to the article by the Associated Press on MSNBC,com:
“The mortgage aid plan would let the FHA insure home loans for an
estimated 400,000 distressed borrowers who otherwise would be
considered too financially risky to qualify for safe, fixed-rate
mortgages. Mortgage holders would first have to agree to take a loss on
the existing mortgages. They would have a powerful incentive to do so
in many cases, given that a government-backed refinance could allow
them to recover more money than they would in a costly foreclosure.”
See the entire article here:
http://www.msnbc.msn.com/id/25375089/Craig Garcia is a Managing Member of Bridge Capital Lending, LLC. A
mortgage and investment firm offering Home Loans, Refinances, Purchase
Loans, Commercial Loans and more. Get Real Time
Mortgage Rates On-Line using the Mortgage Rate Search Engine. They also offer Investor Loans that
use private lenders to fund
Hard Money Loans. Craig can be reached at 877-8GO-GREEN or 954-217-9518.
I must say I was quite shocked to learn that someone had thrown my name in to the hat for the Presidential Election. I am truly honored and will do my best to make the country proud! :-)
Legislation on FHA reform and housing currently in the House of Representative is the last chance at major action before the elections in November. The President has threatened to Veto the legislation, but there are signs that a deal may yet be made.
Many Republicans do not want the FHA to bail out the lenders that had a hand in creating this situation. This is especially true in light of the recent news that the FHA lost 4.7 Billion dollars in 2007. What will happen once the bill has given the green light to accept many more problematic loans?
At the same time, Republicans are facing the pressures of re-election in a bad economy, and do not want to appear to squash the last hope of productive legislation before the elections. So on one hand they don’t want to bail out lenders, and on the other they don’t want to look like the bad guy….
Question - if the lenders have to eat a balance reduction for the FHA to take on the loan at a figure closer to new market value, then the lenders would appear to be taking it on the chin? This seems fair if it would indeed play out this way.
It would provide a fresh start to those homeowners who do show the ability to make the payments on the new loans and are going to live in the properties. This will definitely help those most deserving, but those with investment properties, or unverifiable income may still be looking for answers.
Here is the whole article from MSNBC:
Lawmakers to take last shot at housing bill - Mortgage Mess- msnbc.com
