SOLUTIONS FOR STAYING IN YOUR HOME
Considering the number of foreclosed properties that currently exists throughout the United States, the government has yet to implement a program that favors and resolves the homeowner’s dilemma. The “Making Home Affordable” program that was given to Freddie Mac to administer as the compliance agent by the Department of the Treasury has not been successful in executing a viable program. To date, there are 3 programs under their direction and one program that will probably be the best solution for staying in your home:
- Home Affordable Refinance (HARP)
- Home Affordable Modification Program (HAMP)
- Home Affordable Foreclosure Alternatives (HAFA)
- Private Investors
SO, HOW DO YOU MAKE ONE OF THESE PROGRAMS WORK FOR YOU?
Here is a quick solution for staying in your home:
This plan was designed to allow you to refinance your home up to 105% of the current market value using today’s low interest rates. This means that your chances are great, if you have not liquidated all of your home’s equity to more than 105% of the current market value. (Example: Balance on loan is $175,000 and the current market value is $200,000, you may refinance up to $210,000. You only need to have satisfactory credit, owner occupied, employment and income qualify. Usually this program is not the best solution for staying in your home because most homeowners owe more than the house is worth. This program is not for the homeowner who owes twice the amount of the current market value.
Negotiate with your lender to get the best terms possible because this program is not quite as simple as the HARP. It was intended to help homeowners who are in or about to enter foreclosure due to hardships such as loss of income, medical problems, have high mortgage payments, adjustable rate mortgages or balloon payments. Unlike the HARP, the current market value of your home is not considered. Negotiate with your lender to reduce the interest rate to a 30 year fixed loan at current market value. This can be and has been done when all other factors are in accord. If you are employed and have an income, satisfactory credit, and can qualify and afford to pay 31% of your pre-taxed income towards the principal, interest, taxes and insurance(s) on your home. This program will work for you.
Unfortunately, most lenders offer terms that may not be in your best interest. Terms such as a 40 year loan, 2% interest rate fixed for 5-10 years, forbearance agreements which will postpone or decrease your loan payments for a period of time, and principal reductions are conditions that may not ease your current financial condition. Our current economy is still in disrepair, when considering job stability, unemployment, high debt, etc., therefore it is imperative that you make decisions that will be in the best interest of you and your family. Just be totally aware of what you are getting into.
This is a fairly new program that Freddie Mac manages as an alternative to the HAMP program. Although it does not offer the homeowner a solution for staying in your home, because of inability to qualify for the HAMP or HARP; it will allow you to short sale your home thereby escaping the pitfall of a foreclosure blemish on your credit. This is the only program that will compensate you with $3,000 for completion of a short sale or deed in lieu of foreclosure. In turn, this will give you the opportunity of purchasing another home at current market prices.
There are many private investors waiting to purchase properties at below current market values and will assist you in retaining your property. You benefit because not only will you stay in your home, you will be given the opportunity to refinance your property at current market value. The only qualification here is that you must income qualify. There is no credit or asset qualifying. You can’t get better than that.
What’s in it for them (the investor)? They will gain a quick return on their investment (ROI) in addition to avoiding problems that arise such as capital gains, lender’s 90 day hold guidelines, etc.
Any of the Make Home Affordable programs will only support a maximum loan to value of $729,750. Private Investors are willing to go beyond that limitation.
Given the above scenarios, you decide which program would best suit your needs. But, I think you will probably select the last alternative which is much easier and quicker and surely will eliminate all of the “red tape” that the government programs require.
I urge you to stay in your home, email me (email@example.com) today and let’s make your American Dream stay true.