For many people in this recession, their American dream of owning their own home has turned into a nightmare. They may owe more than the house is worth, they may not have the income to pay their high interest housing debt, or they face a balloon payment that they cannot hope to pay.
It should be clear that the bank that issued the original mortgage in many cases no longer owns the investment; they only service the debt. They accept payments from the homeowner, pay taxes and other obligations, and forward the remainder to the debt owner.
However, for mortgages owned by the two government homeowner-financing agencies, Fannie Mae and Freddy Mac, the Treasury Department started a Making Homes Affordable initiative with two components, the Home Affordable Refinance Program (HARP), and the Home Affordable Modification Program (HAMP).
HARP allows homeowners relief who have remained current on their mortgages by allowing them to refinance their mortgage up to 125 percent of the appraised value of their home at current mortgage rates.
HAMP encourages any investor or servicing company to participate with financial incentives for loan modified through reduction of interest, extension of term to a maximum of 40 years, and forgiveness of balloon payments. The goal is to bring principal, interest, insurance, association dues and PMI to below 31 percent of the verifiable household income. There is a 90-day trial period before permanent modification is granted.
Now, Fannie Mae has announced a new program for those homeowners on the brink of foreclosure who do not qualify for the HAMP plan. In exchange for transferring ownership to Fannie Mae, the homeowner will be allowed to rent their homes and lessen the credit rating impact of foreclosure. Fannie Mae will make available to the homeowner a 12-month lease with month-to-month extensions when it expires and will not market the house until after the initial 12 months.
Rents will be determined by a private management company and market conditions. Former homeowners will have to qualify to stay with rent set at 31 percent of their pre-tax income or less.
Freddie Mac already has a similar program in place, but foreclosure must be completed and only month-to-month leases are offered.
Both these programs are designed to allow the homeowners to stay in their homes for a reasonable period and stabilize neighborhoods. The thinking is that it is difficult to market homes in neighborhoods with scores of empty and sometimes vandalized homes. Even though people are renting, they will tend to care for the home they used to own.
This is a great piece of writing. You could likely turn this information into an ebook with little effort. Good job on this great information.
You have managed to impress me by writing this thought-provoking informational article. You have used a lot of really great content to make your point. I agree with your views.
Great content like this isn’t easy to find online. You have given the world a wonderful article with many good points to consider. I agree with a lot of your views and enjoyed this article.
You’ve brought up some really great points. I think you have a lot of vision and I can understand how you think. Really great writing.
Fresh ideas aren’t seen much these days. With the fear of putting something in print and being called out-of-touch, I’m glad to see someone so in touch with their beliefs.
It’s so great to know you are a writer that cares about the information you provide. This is smartly done and well-written in my opinion.
I am rarely impressed by writers, but you know how to get your point out there. This is an attention-getting article that has impressed me.
This is an excellent example of superior writing. You have made a good impression on me with your interesting content and unique point of view on this subject. Great work!
Absolutely agree with what you reported. Your explanation was by far the easiest to comprehend. I tell you, I usually get annoyed when folks discuss issues that they clearly do not know about. You managed to hit the nail right on the head and rolled out everything without complication. Hopefully, other people can take a cue. Will be back for additional. Keep writing
I have learned something from reading your article today. I appreciate your presentation and knowledge on this subject. This has given me reason to consider the points you made here and I will be back.
I could ask a lot of questions about this information, but you have laid everything out on the table here to the point it is easy to grasp. I agree with much of your article.
You have a special gift for writing. You can express your thoughts in unique, original content. This information is formatted in easy to read terminology that nearly any reader can understand. Thank you for sharing.
Thank you for writing this article in such clear terminology. You are great with this kind of content and I agree with your unique thoughts.
I’m not an easy-to-please reader, but you’re interesting take on this topic has kept my attention. This is one of the best articles on this subject matter I have ever read. This is great material.
I have turned into an online reader these days and have found it’s hard to find quality material. I’m glad I happened to find your article. I found this interesting and reasonable content. Thank you.
I really enjoyed reading your thoughts in this article. I think your material is of great quality and it’s engaging and smart. You’re really good.
I got so consumed in this informative article that I couldn’t quit reading. There are many points that influence smart readers to think. Thank you.
How wonderful to read content that is so well-written, I was mesmerized by all of the information, as well as the way it was presented.
This is a great article with well-scripted, engaging content that is full of original and sensible views. Much of your informative content is in line with my way of thinking.
I am glad you wrote this great article and shared it here. You made great and poignant points that I can agree with and understand.
I think your content is beneficial to many readers. If more writers concerned themselves with their target audience like you do, people would read and learn more about this topic.
I do appreciate that youve added relevant and intelligent commentary here
I would be interested to know how long it took you to pump out this information. I think it’s great. I completely agree and you are very insightful. Thank you.
I would read more on this topic if writers were more like you about using interesting information and adding brain-stimulating content. This is an excellent piece of writing. Thank you.
Your article shows lots of talent in this area and I hope to see more work from you in the future. I will show my fellow colleagues this well-written content.
I’m glad I didn’t have to write this because it would be so confusing. You did a great job with this content and I agree.
You’ve provided me with very definitive information that I needed, but somehow is glossed over or purposely neglected. Your attention to this is greatly appreciated.
This article weighs in as a heavy weight hitter in my opinion. The content is informative, but it’s also clear. This is right on point as far as I’m concerned.