There is a new "gift under the tree" for homeowners and home buyers in Hawaii this Christmas. Hawaii state officials have announced that an agreement has been made with Countrywide Financial Corporation and parent company Bank of America which may help many distressed homeowners losing their homes.
The Gift For Home Owners:
Countrywide Financial was one of the main sources of loans for home buyers with subprime loans and pay-option adjustables. Loan modification terms will be worked out, when possible, with each individual homeowner.
Loan modifications may take the form of any one or combination of various aspects, which may include: a reduction in principal balances, adjustable rates converted to fixed rates or the present interest rate may be frozen or waiver of late fees. In addition, for those who are able to pay off their mortgage under the loan modification plan or refinance their home may have the prepayment penalty waived. This agreement is not a resolution for all homeowners, but will be based on each person's personal finances. It is hoped that as many as 2,400 island homeowners will be able to benefit from the loan modifications.
Foreclosure proceedings will be postponed for eligible homeowners currently in the foreclosure process or behind in payments while qualification is being determined.
The foreclosure rate in Hawaii is much lower than the national average, but the foreclosure rate has risen and doubled in the month of August. The rise in foreclosures is contributed to mortgages being reset, economic woes and rising unemployment. The rate of foreclosures is estimated to be 1 household in 1,272. The national average is 1 household in 488.
The agreement between state official and Countrywide took immediate affect. If your home loan was financed by Countrywide and you are having difficulty making payments or your home is in the foreclosure process, contact your lender without delay.
The Gift For Home Buyers:
For home buyers, your gift comes in the form a the lowest mortgage interest rate in history! In the past two weeks, interest rates have fallen almost a full percent; from 6% to 5.17%.
Lower interest rates not only benefit home buyers with lower house payments, it also gives you more buying power. A quarter of a percent gives a home buyer an approximate increased buying power of $5,000. Since the rate has dropped by almost three quarters of a percent, you can now buy more home for the same payment as a few weeks ago. Combined with the great home prices currently being offered, this is an excellent opportunity for those who wish to buy a home.
Aloha and Mele Kalikimaka everyone!