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!!
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