Admin

Hope for Homeowners from FHA May Get You Out of Foreclosure, But Your Forced to Share the House with the Government.

By
Mortgage and Lending with Guaranteed Home Mortgage Company, Inc.

Yes, it appears that this new program may help desperate homeowners to move out of foreclosure, but if you agree to the program, you have to sign a note promising FHA that they will receive 50% of the equity gained in the house. It just doesn't feel right to me.

Sharing equity with the government is taking away our private property ownership rights. Now the government is going to have ownership interest in private property. Does this sound like a free country to you anymore?

The deal is good for lenders and the government, not for the American People. So you get out of foreclosure, but the goal of having a "nest egg" for savings is gone. 50% is allot!! I just hope that Loan Officers are able to fully explain the parameters of the program and that people are clear about what is at stake here. If your home does ever experience appreciation again, this makes it very tough to move up to a bigger or better home. You may be lucky to walk away with anything after the government takes their 50%. 

I want to help homeowners too, don't get me wrong. I am just concerned about the future generations and when they may inherit property they will be sharing it with the government. What are the long term effects of this policy going to be? Have a Great Day!!

Patty Carroll
Vancouver, WA

Sorry,  but we have to disagree this program is better than foreclosure, losing any equity they have, having a place to live and ruining their credit.

Oct 10, 2008 05:23 AM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

At least with this program they are able to keep their homes and their credit.

Oct 10, 2008 05:37 AM
Vicki Lloyd
The Lloyd Realty Group - San Diego, CA
(619)452-9798, Real Estate San Diego California

I don't know the specifics of the program, but wonder if there is a minimum amount of time that the borrower has to keep the house?  If you can afford to stay in the house with the renegotiated loan terms, when some equity eventually comes back, can you sell it right away? 

If it had only appreciated $100 by the time you sold it, sharing that equity would be a very cheap price to pay for saving your credit!

Dec 22, 2008 10:42 AM