Help for Homeowners

 

Despite all the doom and gloom news stories, most homeowners are happy with their homes and their loans. I certainly hope you are one of them. But, it’s no secret that in recent years some homeowners have had some rough times. Even people who have not suffered financial setbacks may have a hard time refinancing their higher interest loans due to the drop in value in their neighborhoods. Recent government programs are helping homeowners reduce their interest rates, modify their loans and save their homes. Even if a homeowner can’t save their home there are programs that help reduce the damage to their credit. The Making Home Affordable Program is designed to help homeowners in a variety of ways.

 

Home Affordable Refinance Program HARP allows people current on their loans to refinance at a lower interest rate. Even if your loan exceeds the value of your home you may be eligible to refinance at current rates. This will help people who have loans above the current interest rates. People in interest only, adjustable rates or balloon payments will also benefit by the long-term security of the low rates.

 

 

Home Affordable Modification

This is a program for people struggling to make their payments, or who are already behind in their payments. The government will provide incentive to lenders to help modify the current loan to make it more affordable for the homeowner. The goal is to get the mortgage payment, PITI, to 31% of the gross monthly income of the homeowners. The interest rates may be reduced as low as 2%. If that doesn’t get the payment to the 31% mark the lender may increase the term of the loan to 40 years or even defer or forgive part of the balance.

 

Foreclosure Alternative Program (FAP)

Not everyone will qualify or benefit from the Home Affordable Modification program. Some people need to move for jobs etc. and can’t get their homes sold for what they owe. The FAP give lenders incentives to work with the homeowner in the sale of the home, and take less than what is owed on the property. Homeowner benefit by not having a “foreclosure” on their credit history. There are also some financial incentives for some homeowner. If a short sale doesn’t work then the parties are encouraged to do a Deed in Lieu of Foreclosure.

 

For more information on Making Home Affordable got to http://www.makinghomeaffordable.gov/

Or information on avoiding foreclosure go to

http://www.hud.gov/foreclosure/index.cfm

 

Or go to www.billwasinski.com. Both link are on my web site

 

While I can’t negotiate a loan refinance or modification for you, (That’s a little outside my area of expertise) I can provide a Market Analysis to give you an idea of your home’s value. Of course if you need help selling your home, even as a short sale, I’d be delighted to help.

 

Speaking of selling, life still goes on and people’s needs change. Many people need a bigger, or smaller, home, or they need to move closer to a new job or school. I’ve found that a lot of people are hesitating to take advantage of today’s low interest rates and low prices because they think that the will never get their current home sold. You may be surprised! There are so many good reasons to buy right now that homes sales are getting stronger by the day. Buyers are out there!  Give me a call and we can discuss your specific wants and needs. There’s no cost, no obligation and no hassle.