Follow Me On Pinterest
Yes, the government is intervening yet again since their previous plans did not work, and were way off target! There is yet another plan coming down the pike. Washington is trying to help 1.5 million under water homeowners who owe more on their homes that what they are worth in order to tackle the foreclosure crisis.
FHA (Federal Housing Administration) announced that they plan to help “under water” homeowners to refinance “IF” the lender agrees to forgive at least 10 percent of the original loan balance. The government thinks they have hit the bullseye this time.
I wonder how much of the tax payers money will be wasted on this latest Government help?
I would like to think they have hit the center of the target but I believe this is yet another plan that will fall short, yet again. Loan balances need to be cut much more than 10% for most homeowners before this will have any impact to help homeowners “under water.”
Secondly, in order to refinance, a homeowner must have “equity” not to mention “good credit” and income to qualify for this “Refinance” the government is advocating.
What the government fails to realize is that home values have decreased substantially and no lender will refinance a home for values that are lower than what is owed on a home. Oh, and by the way home values did not just decrease 10%! I think the Obama administration has somehow lost a grip on the pulse of the “under water” homeowner and real estate in general. Just my opinion…but I think this too, shall fail and falls short of the target!
My prediction with this new Government intervention… we shall see more foreclosures!
Other Important Real Estate News:
Why 1st Time Homebuyers Need to Buy NOW
Sacramento Getting Some GREAT Real Estate News
Bank of America: Hire American!
Bank of America: Hire American!
Hey, I really enjoyed this thread. There are a lot of great posts here. I am going to do a little studying on this and come back and contribute something.
I will be checking back soon to review more articles like this and this website as well.
In the meantime…. Stay blogging!
Thank you Reanna. Do come back anytime.