The new foreclosure bill, or “Hope for home owners act of 2008″ is a act where congress gave the FHA 300 billion dollars to refinance certain mortgages the were obtained prior to January 1st, 2008. They are allowed to use this money between October 2008 and September 2011. They are supposed to use this money to refinance unaffordable mortgages through cooperating banks and mortgage lenders. Many experts think this new “FHA bailout” is a joke and that it was passed only as a solution to also keep the strong bank lobbies happy.
Once you look at the actual numbers and see the people who actually qualify, it’s easy to see that the new foreclosure bill is only protecting the rights of about 15% (or less) of the current foreclosure victims. The average home price of all our clients is $170,000 and from Oct. 2008 – Sept. 2011, we expect to see a minimum of 3 million foreclosures. Right away, you can see that not everyone can be helped, simply because there isn’t enough money available, but on top of that, the lending guidelines require at least 10% equity. Because of the dropping home values nationwide, and new strict appraisal laws, very few foreclosure victims will find the needed 10% equity in their home. In fact, the majority of our foreclosure help requests are “upside down” in their mortgage. If a lender wants to use this new mortgage, they will have to forgive (an estimated) 30% of the total payoff. Given our experience with lenders, short sales, and deed in lieu of foreclosures, we know most banks or lenders will not simply forgive this debt and allow the new mortgage. In theory the new foreclosure bill is a great idea, but in practice, there is nothing that is forcing the lenders to forgive the additional debt; they can simply say “I’m sorry, but you don’t qualify”, something many of you must be very tired of hearing.
Here is the bottom line: If you have a minimum of 10% equity and you have steady income that shows you could make payments at a +/-7% interest rate, then you may qualify for a FHA Bailout Loan. There are many factors that effect this decision, so don’t think that just because you meet these factors, that you’ll get approved. But if you do, then it’s worth getting more details.
There are many other options, even if you don’t qualify under the new foreclosure bill, so don’t worry. If you need help and if you can afford to make a low, regular monthly payment, then you can probably keep your home. And if you can’t afford your home, then chances are, we can help make it affordable with a loan modification. If you don’t want to keep your home, then a short sale, or deed in lieu may be a better option. We can help with any of these option, simply fill out the form on the left and we’ll get you our free membership and ebooks.
If you do think you qualify for the new foreclosure bill, then we can help walk you through the process of working with your lender or possibly finding a new lender who is more understanding towards your hardship.
The new foreclosure bill can help about 15% of foreclosure victims, so find out if you qualify today.
If you are not part of this 15%, you may want to look in to other options, such as a mortgage modification, or getting a normal foreclosure loan. In many cases, we have been successful at reducing the total payoff of the mortgage to allow a complete refinance. There are many options, so don’t give up hope yet.
Our free membership will provide more information about the foreclosure bill and your rights as a foreclosure victim. Simply complete the form on the left and get started today.
Even if you’ve been turned down elsewhere, we can still help. Not everyone offers every service to stop foreclosure, so you may have been turned down because they didn’t have the tools available to help you stop foreclosure. We have helped 1000’s of people and we can help you!