On September 7, 2010, the Obama Administration implemented the long awaited help to struggling homeowners facing foreclosure. It's a plan that supposedly is to help at least 500,000 distressed homeowners throughout the U.S.
I wrote an article on Sacramento Real Estate Voice about this plan and how I thought it would help or NOT.
Does the Administration have a beat on the pulse of the struggling homeowner? Is California different from the rest of the Country? Is the Sacramento area that much more in distress than other parts of the United States? Did other states lose less equity and still have struggling homeowners that will qualify for refinance?
How much will it cost the tax payer to implement this new Administrative help? Is this just another plan that won't work?
Has the guideline for refinancing changed? Will Lenders lower the mortgage balance by 10% or more? Is 10% on a mortgage balance REALLY going to have an impact for the borrower? Will the borrower's home value be such that it qualifies for refinancing? Do you think lenders holding the mortgage will actually buy into this new plan?
Will the Administration when this fails, offer incentives to lenders to implement this plan on the back of the American Tax Payer?
These are all questions I have since I don't see any substance in the plan helping the Sacramento homeowner avoid foreclosure.
Check out the article, Will New Plan Help Stop Foreclosures I wrote and please give me your perspective in your State, City or County as to whether you think this plan through FHA will actually help homeowners avoid foreclosure.