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Bush's Mortgage Bailout Plan Summary

President Bush's Mortgage Bailout Plan Details Dec 6th, 2007

What options do home owners have that are facing a huge increase in their mortgage payments as their interest rates get ready to reset? Are you eligible? Do you qualify?

President Bush today announced his plan to help the U.S. mortgage crisis. The plan is geared to borrowers who are not currently in foreclosure. The plan will freeze your current interest rate for 5 years. Here is a summary of who is eligible for the assistance.

•· Your mortgage must have been originated (You signed the loan documents) between January 2005 and July 2007.

•· Your mortgage is scheduled to reset (Adjust to a higher interest rate) between January 2008 and July 2010.

•· The home must be owner occupied. (You must live there as your primary residence)

•·         You can't have more than 3% equity in your home.
•·         You can't be behind on your mortgage payments. (There are grants available to help people get caught up)
•·         The home owner must prove:
•o   They can handle their current payments.
•o   Can't afford the payments after the reset.

If you fall in to the narrow spectrum above you may be able to preserve your dream of home ownership a little longer. For others there are still options from the original mortgage bailout plan announced in August.

FHA Secure

FHASecure is a refinancing option that gives credit-worthy homeowners, who were making timely mortgage payments before their loans reset but are now in default, a second chance with a FHA insured loan product.

WHO IS ELIGIBLE

To qualify for FHASecure, and include the delinquent loan payments, homeowners wishing to refinance must meet the following requirements:

Have a non-FHA insured ARM that has reset;
Sufficient income to make the mortgage payment; and
A history of on-time mortgage payments before the loan reset.

Homeowners who are current on their conventional mortgages must have sufficient income to make the mortgage payment.

The FHASecure program will allow for the total mortgage amount to exceed 100%. Your second mortgage lender must be willing to subordinate their lien or a new 2^nd mortgage must be issued.

For more information or to see if you are eligible, feel free to contact Nate Ellis 888-808-6283

Nate@BUILDitBUYitREFIit.com

Posted by Nate Ellis "Mr Danke Schoen" on 12/06/2007 12:59 PM

Comments (11)

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11 Comments on Bush's Mortgage Bailout Plan Summary

DEC

2007

Is this a vote getter or are they really trying to help people? We need to let the market run it course. Why would someone keep making payments on a home that has gone down 10%, 20%, 30% or more. I have seen people walk from homes because they could rent the same or bigger for less money. The program may help some people, but the majority will do what makes the most sense to them.

Well all I can say is it is a plan, but what about all the people that are in recorded Notice of Default and got the loans during this timeframe. Sounds like you almost have to be in good standings all the way around in order to get any help! Doesn't make much sense to me. The foreclosure problem is with the people that are actually IN FORECLOSURE.

Joseph-This plan was a compromise between the feds and the mortgage banking industry. The numbers from Barclays say that the plan will only help about 12% of the folks in trouble.

Rosemary-I agree that the plan does not do enough to help enough people. The goal of the plan is to curb the bulk of the loan resetting and does nothing for those already in trouble. There are grant funds up to $5000 available to help people bring their mortgage current.

MAR

2008

hi,nate Ellis. Ibougth my home in sept 2006 at crockett,ca. The property at that time is 460,000.00 and its now 445,000.00 or less.Me and my wife we made about 70,000.00/year, we pay 2450.00for our first mortgage and 981.88 for our second mortgage, not including property taxes and home insurance. We're so difficulty to made a morgage payment. But, we did and never late, our rate is 7% fixed on first loan, and 12.5% fixed on second loan that's sky high. We're expected to get refinance for abetter rate in future, but unfortunately the mortgage crisis and economic hit us, the home values went down no lenders to give me the refinaning.And recently my wife just got lay off, i can't keep up with mortgage payment this month or in the future with my only incom. What could i do to avoid loosig my home? Am i eligible to president BUSH's mortgage bailout plan?

JUL

2008

What was left out of the equation was the fact that they would never have qualified under convention terms to get a lower rate, as in most cases the income was not there. If the only way you qualified were going stated, why would you expect to qualify at a low rate that would demand you to prove your income? In some rare cases it made sense. A person or family with the potential for a significant increase in income was a good candidate. Anyone else it was just a crapshoot and not we're looking at snake eyes on the dice.

We underwrote so many files to loose guidelines and made even more exceptions to close the loans. It was ridiculous. You would have had to be there. Management frowned upon rejecting a file as it meant money as the loans were being sold within days of funding into the secondary market.

No one cared of the results, as they were being paid realtor, broker, loan officer, account manager, appraiser, escrow and title. As a notary going through the loan docs, you knew when a client was getting screwed if you had a real estate background and understood the market conditions.

Too little, way too late!

JUL

2008

Gov't money is taxpayer money. Don't assist those who voluntarily made a stupid decision. I am tired of paying for the bad decisions of others. They need to lose their homes to send a message to "think". Personal responsibility is critical.

SEP

2008

Anonymous in Crockett - I am sorry for not getting to your question sooner. I fear my advice for you may be too late because of my delay. Your situation is what these programs are designed to help folks out of. The catch is that you most likely will not be able to re-qualify for the new payments on your loan based on the income you can now verify. There are now additional programs in place that might be able to provide some relief by forgiving some of the balance of the loan. If not selling your home under short sale terms may also be a viable option. I suggest that you contact a local non-profit housing agency and go over the options for your situation. I am in your area (the East Bay) if you have direct questions as well.

FindaNotary - As investors looked for the fast buck the rules of lending went out the door. Everyone has played a role and we are all suffering the consequences. To say that no one cared is a bit much. The frenzy of that crazy market had people doing crazy things. People who never dreamed of owning a home were given a chance to have a piece of the American dream. Many of them didn't read the install directions before loading the software on their hard drive. could the industry have done a better job of educating people about the responsibilities of home ownership? YES! But the market was like a hot Craps table. Everybody going with the roller and the chips were stacking higher and higher. When most people put all their chips in the dice came up craps.

Steve - I agree that people need to pay for their mistakes. The reality of all these foreclosures is now people that have made sound choices are suffering. The staggering number of foreclosures in some areas has driven down prices so much that homes prices have fallen over 40%. Great opportunity for new buyers but bad for all the others already living on the street. The program is designed to stop the hemorrhaging, but its like using a ban aid when you need a tourniquet.

~Nate

SEP

2008

I Have come across a non-profit organization to help homeowners whether they are in foreclosure, about to be in foreclosure or just want to buy a new home. The organization is NACA (Neighborhood Assistance Corporation of America). I have found this corporation to be very helpfull and am always talking to others of its benefits. They are working very well with banks to renegotiate mortgages. The corp does not advertise its all word of mouth. I have seen people use the programs and have excellent successes. should you wish to learn more go to NACA.com or call 1-888-302-6222. If you have loans with Countrywide and Bank-of-America then your cahnces of having your mortgage restructured are pretty good yeat not guaranteed. Anyone in trouble should seek assistance with this corp. first because they have achieved results with many people around the US and they focus on those who were acquiring Predatory loans.

I hope this Corperation can help you stay in your current home should you not want to sell your property.

NACA.com or call 1-888-302-6222

Best regards Jason Johnson

Jason - thanks for the Great Info. NACA is a wonderful organization. People can also contact HopeNow.com 888-995-HOPE (official site supported by the Feds) for more information about counseling and help available to people falling behind on their mortgage.

~Nate

NOV

2008

Hey Steve,

A lot of us wanted to own a piece of the American dream. Yes, a home investment for the family. I have made all payments on time and have had no problems paying my bills and saving in the past. Since I have owned a successfull construction company for the last five years I purchased a home well within my means. Now its worth 80k less, and my company is on the verge of going out of business. No work equals no money. Your not the one that would help pay for this govt screw up. Thanks for your sympathy. I dont deserve to lose my home. I am very responsible. Silver spooners like you will never understand the struggle. "Rags to riches" When you think your well out of the struggle, banks, govt, people like you, and monopolies sht on us.

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