Could there actually be some help coming for homeowners that have been consistantly paying thier mortgage? It seems that five specific states have been granted yet another special fund from the government. Is this more smoke and mirrors or will it really help?
WASHINGTON—The U.S. Treasury Department said Wednesday it had approved five states' plans to aid homeowners in the hope of thwarting foreclosures in communities hit hard by the recession.
State housing agencies in Arizona, California, Florida, Michigan and Nevada will receive a total of $1.5 billion from the Obama administration's "Hardest Hit Fund."
Proposals approved Wednesday include programs to help struggling homeowners who owe more than their homes are worth by reducing the principal owed on their loans; to help unemployed or underemployed homeowners make mortgage payments; to facilitate the settlement of second liens, short sales or deeds in lieu of foreclosure; and help with payments in arrears.
In my home state of California I just heard my first financing dream story in a long time that had to do with a bank. A good friend of mine and also a real estate partner was offered a no strings attached permenant modification on her Option ARM from Chase Bank. No paperwork or underwriting. They simpley did a BPO on her home, say that she had good history and bang she got a permenant modificaiton. Here is how the deal worked.
- Her principal was reduced to a point where the payments on the new fully amortized loan almost match her Option ARM.
- She was offered a rate of 5% that would be paid off within 18 years.
- No underwriting, tax returns or pay stubs and it takes effect next payment!
Looks like Chase is picking and choosing who deserves a modification and who doesn't. Maybe her perfect payment history paid off. Or maybe she just has some really good karma.
Until Next time Here is to your success! Jason Wheeler 925-285-2172Leave a Comment Below I Answer Each One!