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Thursday, February 16, 2012

Obama Refinance Program Details - Do YOU Qualify?

Obamas Refinance Proposal Details:

* The owner is allowed to have only missed one payment in the past 6 months. That shouldn’t be too large of an obsticle for most owners to overcome……but….

* Owners who are underwater by more than 40% must get their lender to agree to forgive the negative equity. LENDERS must agree to do this. Lenders would have to get investors to agree to this forgiveness. Right...

* Mid 500s credit score.

* No Jumbos. ‘Qualifying Loans’ only. Loans must be less than $725,000 (or there abouts). Remember, the max loan amount differs depending on where the home is located.

* The negative equity is STILL ON THE LOAN with this re-fi plan. Owners would get a lower payment but, still be underwater. When these owners go to sell and if they were still underwater they would have to sell as a short sale or lose the home through the foreclosure process.

* This proposed plan is open for non-GSE backed loans. In other words, the banks would be dumping these less than stellar assets onto Fannie and Freddie..and, the tax payers. What was private debt becomes public debt.

* Congress has to sign off on this housing plan.

As long as owners are underwater there will never be a real housing recovery. Not sure who can forgive who and how much. But no politician gets our pain. UG.

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