Again, our current administration is attempting to help homeowners. My remarks are not political, it’s another example of Congress and the Administration being out of touch with the problems homeowners have in today’s market.
The new measures announced last Friday are aimed at assisting the 7 million households that are behind on their mortgages and the 11 million households that owe more that their home may be worth. That’s good news, the 11 million households that owe more than their home is work is a very proactive plan. My applause.
If this plans works, people with come out of this process with payments that reflect the market value of their home. What’s not answered is the principal recalculated or just added on to the end of their mortgage? Anyone have more current information?
This part of the new plan may help Walnut Creek Homeowners. if you sell your home rather than let it go to foreclosure, you will receive a relocation assistance of $3,000. I’m not sure if this applies to homeowners that actually have equity, is $3,000 enough?
This new plan will cost taxpayers $50 million. Here are the bullet points of the new program.
1. Assistance for unemployed homeowners. 3 to 6 months forgiveness or reduction of payments. It’s up to your lender(s.) This will help many Walnut Creek unemployed homeowners.
2. Here the complication one; request that mortgage servicers consider writing of a portion of the homeowners loan. Most of the home loans in the Walnut Creek area were at the time considered Jumbo loans. The actual servicer is probably not the actual owner of the mortgage. In other words, your asking an investor to forgive his investment. This is also why so many short sales are very difficult and should be done by real estate professional that know the mortgage banking industry.
3. Speaking of the investor that owns your loans, here’s the third and final benefit of this new program. If the investor agrees and if you owe more than your home is worth you may be able to negotiate a reduce the principal balance. This one will be the hardest to do, but will assist the homeowners in the Walnut Creek and San Francisco East Bay Area the most.
Ok, so how can you, the homeowner start this process of reducing the principal balance of your home loan? Please do not fall for one of the scams out there that say they can lower your payments and give you a set of steak knives.
Please use common sense, call you mortgage company and see if there aware of these new programs. Use the escalation process that real estate professionals use. if you’re not getting answers from the person on the phone, ask to speak with their supervisor or just call in again. If that’s not working, write a letter to a senior executive of the mortgage company and copy the Bank President. Do some creative thinking outside the box. If you’re not qualified or the Bank is not interested in working with you, that’s the time to talk to an Attorney, Account and your real estate professional.