Hi folks. I guess by now you have read or heard of the Obama Administration’s Making Home Affordable(MHA) plan. Here the three major components.
- Refinancing options for folks that have been making payments and whose 1st mortgage is no more than 105% of current market value. Example: If the property is worth $100,000 the 1st mortgage must be $105,000 or less. Unfortunately this program will not help many people in my market, Poinciana Florida, since values are down 65% in the last 24 months. In Poinciana the house is worth $85,000 and they owe $200,000+.
- Loan Modifications: Loan Mods are for folks that want to to keep their house who are not able to refinance either because they are not current with their payments or they owe more than 105% of current market value. The loan can be modified by:
- Reducing the interest rate.
- Lengthening the term of the loan.
- Reducing the principle amount.
- Short Sale Incentives: The part of this I really like is the $1,500 to help the Sellers move.
Overall I like this plan. Unless I’m missing something it does seem to be geared towards helping people stay in their homes. It’s also designed to lower foreclosures and give lenders incentives to do short sales or deeds in lieu of foreclosure. And that’s a good thing.
Below are some links so you can read up on this and then come back and let me know what you think. Better yet, write a post, come back and leave a link in the comments of this post. I need your opinions.
My question is……Should we as REALTORS(R) be doing Loan Modifiations?
MORE INFO FROM BROKER BRYANT… THE SOURCE FOR CENTRAL FLORIDA REAL ESTATE
Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved