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.
I think more writers should take care to write with passion like you. Even informational articles like this can have personality. That’s what you have interjected in this informative article. Your views are very unique.
Normally I find this type of information dull and boring, but you turned that all around for me. This article takes you right in and won’t let go until you’re done reading the whole thing.
Thank you so very much for writing this article. I have been searching for information just like this. I had been confused by other similar writings, but you helped me.
You’ve gone to a lot of effort doing your homework with this article and it shows. More writers should take the time to get their point across in a clear and concise way. Thank you.
It takes a lot to impress me when it comes to writing quality articles. This article has impressed me with good writing I can appreciate.
It appears that you have put a good amount of effort into your blog and this world require more of these on the Internet these days. The both of us actually enjoyed your post. I do not have a great deal to say in reply, I just wanted to sign up to reply well done.I always learn something new from your post!
I have researched the topic intensively and this is the best article yet. Great job !
There are many aspects in this content that I can relate to and appreciate. The specifics are solid, interesting and well-written so as to make them easily understood. Thank you.
That is a great point to bring up. I offer the thoughts above as general inspiration but clearly there are questions like the one you bring up where the most important thing will be working in honest good faith.
Your article contains great quality content not often seen. Your views are original and well thought out. You made valid points on this subject on which I concur. Thank you for writing great interesting content.
All I can think to say is wow! I think your info is intriguing and fascinating. You have done a great job on this article.
Finding good information on this subject that is both well-written and easy to grasp is a phenomenon. That’s why I decided to put a comment here to let the writer know this article is great.
Thank you for writing this tremendous top quality article. The information in this material confirms my point of view and you really laid it out well. I could never have written an article this good.
Reading your article was a really illuminating experience. I enjoyed your informative content and learned a lot about this topic I never knew. You are an insightful writer. Thank you.
It is really a great and useful piece of information. I’m glad that you shared this useful information with us. Please keep us up to date like this. Thank you for sharing.
I like the way in which this article was presented for us to enjoy. It has a certain flair about it that places it first above many that give us a good reason to think.
The thoughts you’ve shared in this content are much like mine on this subject. This is an interesting and quality article. Thank you for making this information easy to understand. This is very excellent work.
It’s hard to dispute great information like this. Your points are right on and I agree with you 100 percent. Thanks for making it so interesting.
Im a huge fan already, man. Youve done a brilliant job making sure that people understand where youre coming from. And let me tell you, I get it. Great stuff and I cant wait to read more of your blogs. What youve got to say is important and needs to be read.
I am never quite sure what to write about an article I read, but I do really like your article. You’re content is very smart.
Your article is great! Your viewpoints are valid and well-represented. This is useful and interesting data that I can appreciate. You are obviously knowledgeable in this area. You kept this content smart and very engaging.
Hi vey nice interesting blog im from i found this on bing i found this blog very interesting good luck with it i will return to this blog soon
I enjoyed the information in your article. I like how you laid it all out so clearly. There’s no way to mistake what you’re thinking. I like this topic and I hope to read more.
I believe information is what gives us all a reason to think. Without writers like you, I might not have an original thought. Thank you.
Your article contains great quality content not often seen. Your views are original and well thought out. You made valid points on this subject on which I concur. Thank you for writing great interesting content.
I barely got through the second sentence before this article drew me into it’s spell. You have really made your points and I agree on most of them. Thank you.
I would read more on this topic if the info provided were as interesting as what you have written in this article. Don’t stop caring about the content you write.
I can tell the author of this article really went above and beyond with the research for this content. I am impressed with your insight.
You are obviously very good with words. This article shows your true talent for expressing unique thoughts other writers only aspire to think. I have respect for your writing skills.
I have enjoyed this article. Your writer has piqued my interest and given me plenty to think about from the alternative views that were presented.
I can’t match some of the great comments here, but I do know you’re a wonderful writer with a unique perspective. Thank you for sharing.
This article confirms that there are prize worthy-writers out there willing and able to take the time to research their articles and share them with others. Thank you for sharing.
I would like to show my appreciation for your quality article. Your original content has given me reason to think about a lot of this information. Your writing style is original and engaging. Thank you.
Hi I really appreciate all the great content you have here. I am glad I cam across it!
This is the best article on this topic I’ve seen. Readers can identify with your views and learn something from your knowledge of this subject.
I wish I had found this article sooner. It would have saved me from the confusing data I had to read on this topic. Thank you for clearing things up for me. I appreciate it.
This information is unique to me. I really like your points and think you put a new spin on this for readers. I respect your writing style. You’re so perceptive.
Thank you for such a well written article. It’s full of insightful information and entertaining descriptions. Your point of view is the best among many.
I agree with your sentiment exactly the way you have written it here. It has been long overdue for someone to write with such passion about this subject. Thank you.
I can describe this material in one word: Incredible! I am highly impressed with this information and how it’s written. Keep up the good work.
It’s very nice to find articles like yours. I am glad I had the opportunity to read your article. I think it’s interesting, intelligent and very original. I hope you are going to write more.
You have really made me think about this topic. You’re persuasive writing style and your writing skills are impressive. This is great info to have. I really enjoyed your article.
Your article is excellent. Your writing style and solid information is interesting and smart. I agree with a lot of your views. Thank you for your dedication to quality content.
This article astonished me just by the way you described this subject. I have never seen such quality in any online content before now. Amazing!
Thank you for writing such a great article. I’m impressed with your views on this matter and I agree with a lot of your ideas.
Not everyone will agree, but I think you make a good point.
Informative articles like this impress me. I think these points made are fresh and original and I agree with a lot of this content. Thank you for your great writing.
This is what good writing is made of; interesting, engaging, intelligent and well-written content. This is exactly what I see in your article. Thank you.
For some reason, your article makes sense to me. Maybe I just agree with your thoughts. It helps that you write interesting content. Thank you.
All I can say is wow! I stand in awe of this info and am in complete agreement on nearly every point made here. Thanks for caring about your content.