What's in the Foreclosure Prevention Plan

Well, it looks like there is more help on the horizon for homeowners that are either going to lose their home or could be at risk to lose it. Here is a summary from Realtor Magazine:

What's In the Foreclosure Prevention Plan The Obama administration released its long-awaited plan to stem foreclosures. It's organized into three categories: 1.) Help for home owners making their payments but at risk of default and foreclosure. Home owners with a Fannie Mae or Freddie Mac loan would be eligible to refinance as long as their mortgage doesn't exceed 105 percent of the home's current market value. Currently owners need to have at least 20 percent equity. Potential impact: 4-5 million households.2.) Help for home owners already in default and in need of loan modification. For lenders that voluntarily agree to lower a borrower's payment so that it makes up no more than 38 percent of the borrower's income, the government would share the cost of lowering the mortgage burden to 31 percent of income. Incentives to lenders to participate include a $1,000 payment. Borrowers can receive up to $1,000 as an incentive to stay current on their new mortgage. Still in the works is a proposed provision that would allow bankruptcy judges to require loan modification (known as a cramdown) as part of a household's restructuring. That provision requires legislation by Congress. Estimated potential impact: 3-4 million households.3.) Doubled resources to Fannie Mae and Freddie Mac. To encourage investors to buy the secondary market companies' mortgage-backed securities, the government explicitly backstops them to up to $400 billion, twice the current amount.The plan does not provide help to investors or to home owners who are in trouble with a second home, nor does it apply to homeowners whose mortgage is part of a private-label mortgage security that is not backed by Fannie Mae or Freddie Mac.

If you need more information or have any questions, you can email me at sgoetz@surovell.com

The Market

In case you have not noticed the market is changing. Some areas for the better and others not. You know the old saying when you buy real estate "Location, Location, Location". That is just part of it.

It is still a buyers market. If you are selling and think you can profit on the sale, think again. In most cases that does not happen. You are lucky if you come away from closing breaking even. But on the bright side, you get so much more for your money.

Welcome!

Welcome to my blog.

In this blog I will be sharing home buying/selling tips and current market trends. I am excited to have a place to share my home buying/selling knowledge with you.