100,000 points. Sign of passion over this business? Perhaps I just love blogging? Enjoy receiving comments? Look forward to the next client who finds me because of Active Rain? Or my intense desire to see us recover from this economic recession and see homeowner's STAY in their homes vs. suffer foreclosures or short sales?
I have blogged a lot about keeping the homeowner in their home and I am still passionate about developing a plan to do just that.
In summary, I propose
•1) implementing new common sense underwriting guidelines for the loans which are eligible for refinance, but the subordinating lender refuses to subordinate or any refinance which "makes common sense" for other logical reasons. In cases where "common sense" underwriting does not prevail, mortgage insurance is placed on the subordinate lien to make the 2nd lien holder feel comfortable to agree to the subordination.
•2) forbearance of debt (not elimination) for the amount of the mortgage in excess of 95% of current market value for those borrowers which can demonstrate a hardship. Why should a stranger be allowed to buy a home at a price the current owner can afford? Forbearance of debt is better than selling the home, leading to large lender losses, deteriorating/unkept properties, and attorney fees.
•3) allowing a streamline rate & term refinance for anyone. The FHA streamline rate & term program would be used. This program includes placing mortgage insurance on the new loan. For those who do not qualify due to poor credit as a result of applying for a loan modification or for any hardship reason, they too should be allowed to rate & term streamline refinance through the FHA program with mortgage insurance.
•4) allowing a re-entry into home ownership for those borrowers who fell victim to the mortgage crisis and were not allowed any of these remedies. FHA guidelines, which would include home buying education, can be developed which would allow for re-entry of the former homeowner. Currently, there are 10-15% less home buyers in the market due to foreclosures or short sales. They must wait 4 years until they may qualify again. Some of these buyers should wait 4 years, but the former homeowners who suffered due to job loss and were not allowed a loan modification should be allowed re-entry sooner than 4 years.
In order for this economy to recover, the homeowner MUST STAY IN THEIR HOME. Please pass on this blog to anyone who may have a connection to leaders in the government or lending industry to implement any of these proposals.
Homeowners everywhere will THANK YOU!