Great debate and no shortage of proposals on what to deal with the Mortgage Crisis. It's sure to become an even hotter topic as the General Election draws near in November.
While Senators Clinton, Obama, and McCain unveil their plans, and ratchet up their accompanying rhetoric, the White House, Congressional Democrats, and HUD are working on separate plans to help those homeowners that owe more to their lender than their home is worth in today's Real Estate Market.
In the olden days - say, 2005 - refinancing was easy, as appreciation was steady, year upon year, for many years. With appreciation slowed to a crawl in many markets, and actually turning toward DEpreciation in several others, many, many homeowners are negative. The glut of high-leverage mortgages, as well as resetting adjustable interest rates, only compound the problem.
According to FHA underwriting guidelines, however, in order to re-fi into a new FHA-backed loan, a borrower can have no late payments over the past six months of their current loan - FHA or Conventional. HUD, under the support of President Bush, is looking to make this rule more lenient - as long as the potential refinanced homeowner qualifies in other ways.
Stay tuned for further tweaking from a number of fronts!
Separately, in a proposal potentially affecting hundreds of homeowners across Chicago and throughout Illinois, Governor Rod Blagovejich has backed legislation giving delinquent homeowners a 60-day reprieve before foreclosure action can be initiated.
The Governor's proposal includes 30 days of mortgage counseling, plus an additional 30 day workout period where it would be hoped the homeowner could either re-finance his loan, or work out a satisfactory forbearance arrangement with his lender.
Our post today via BlogChicagoHomes.com covers both proposals.
DEAN & DEAN'S TEAM CHICAGO