Another great post by Katerina. When is this administration going to finally realize that band-aids cannot/will not stop the bleeding?
The US Department of Treasury has another government help program for homeowners who are underwater. We can be sure of one thing, what ever the program says it is going to do, rarely does.We learned from the HAMP program that it never even touched the total number of projected homeowners it was supposed to help. HAMP is the government Home Affordable Loan Modification Program.Read here for more details- Has Your Short Sale Or Loan Modification been turned down?Then we had the US Treasury Department roll out the HAFA program- How's That HAFA Program Working Out For You?That was another program that was going to help hundreds of thousands of homeowners but of course did not apply to Fannie Mae or Freddie Mac. So they threw the lenders a few bones to get them motivated to put homeowners into the HAFA program for their short sales and deed in lieus.Well, I think we all know how these two programs are working out.Read here to see a story of just one homeowner who is now losing his home because of the HAMP program.Neither of these programs are working out well for the millions of homeowners who are underwater on their homes and who are in foreclosure.The states hardest hit by the housing crash are also the states with the highest underwater mortgages so rarely do any of these programs help.So what is the next best step? Throw more money at the problem and ignoring the disease.The US Department of Treasury program is like a last ditch effort to attempt to fly in as Superman and save the day for thousands and thousands of homeowners who are about to lose their homes.Here is an overview of the bail out program:There are two programs- Hardest Hit Fund and HUD Emergency Homeowners Loan ProgramThe Hardest Hit Program gives Federal Money ( that they don't have) to States hardest hit with unemployment. This money is set help assist non profit community organizations to help provide assistance to save the homes of homeowners who are unemployed until they find employment.The HUD Emergency Homeowners Loan Program will be giving out bridge loans to homeowners in hardest hit areas and these loans will be distributed by state and local non profit groups.
- The loans offer a declining balance, they are zero interest loans and the maximum loan will be $50,000 to help the homeowner make their mortgage payments, interest, mortgage insurance, taxes and hazard insurance payments for up to 24 months. This is a bridge loan.
- Homeowners must be at least 3 months behind on their payments and have a "reasonable likelihood" of being able to continue their payments within 2 years.
- The homeowners must have a mortgage on their principle residence, their primary home.
- Homeowners may not own more than one home.
- They must be able to show that before they were unemployed or whatever the emergency that they were making their payments.The targeted areas will be announced shortly.Now here is the good stuff. Remember always the new golden rule- If you work your butt off to pay your mortgage payment on time, to heck with you. If you work 3 or 4 jobs to keep current on your mortgage payments- you are not worth helping. If you follow the rules, they don't have to.Again, as with HAMP and HAFA and the lack of success with those programs, I will say,Don't hold your breath on this one either.
To view Welington Florida short sales Click here. We know Wellington Florida Real Estate and Wellington Florida Short Sales and will help you get your home Sold if you need to Sell your home and help you buy your home in Palm Beach County Florida: Call us today.
Copyright © By Katerina Gasset 2010 * HFA- Another Government Foreclosure Help Program For Homeowners*
Designated Broker-Summit Home Consultants