I was not able to be at President Obama's last visit here in Elkhart Indiana, but I have seen parts of that visit broadcasted on different news stations. One thing is evident, Elkhart's hardships were noticed and the President has taken us into account when trying to devise a program that will help Elkhart now, and perhaps other communities that are struggling as well, just not as deeply as we have. Here are some highlights to his new Homeowner Affordability and Stability Plan.
Millions of responsible families who make their monthly payments and fulfill their obligations have seen their property values fall, and are now unable to refinance to lower mortgage rates because of falling home prices. Our falling home prices are partially due to the sheer volume of foreclosures, or even pre-foreclosures. Another cause is because of the pre-foreclosure and foreclosure prices buyers are not willing to pay for top-dollar in any home. They know that if the Seller truly wants to sell, they will have to lower their price to complete the sale.
This present housing crises is real, but temporary. As house prices fall, the demand for them will increase, everyone likes a good bargain, and the market will eventually find a new balance. However, those paying their mortgages are suffering because of this falling market because lenders traditionally will not refince unless your loan to value is at the 80% range. Appraisals are coming in at a lower pri ce than the Homeowner bought the house and they are unable to take advantage of the lower interest rates just as new Home Buyers are.
The Obama Administration's Homeowner Affordability and Stability Plan will offer assistance to as many as an estimated 7 to 9 million homeowners making a good-faith effort to stay current on their mortgage payments. Here is the Plan:
Homeowner Affordability and Stability Plan
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Refinancing for Responsible Homeowners Suffering From Falling Home Prices
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A Comprehensive $75 Billion Homeowner Stability Initiative
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A loan modification plan to reach 3 to 4 million homeowners with shared effort with lenders to reduce interest payments and incentives to servicers and borrowers
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Clear and consistent guidelines for loan modifications
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Required Participation by financial stability plan participants
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Modifications of Home Mortgages during Bankruptcy
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Strengthen Hope for Homeowners and other FHA loan programs
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Support Local Communities and help displaced renters.
3. Support low mortgage rates by strengthing confidence in Fannie Mae and Freddie Mac
If you have questions, please call your Elkhart Indiana Real Estate Expert Evelyn Johnston with Prudential One Realty at 574-304-7148.
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