Tuesday, March 30, 2010

Virginia Loan Modifications – Economist Says Don’t Be Fooled by New Obama Plan

With all the excitement surrounding the new proposed help for underwater and unemployed homeowners, some leaders are saying “beware”. To give you an example, a new article has been released by Dean Baker, Economist and Co-Director of the Center for Economic and Policy Research, which concludes that the new Obama Loan Modification Plan will continue to fall short of what is necessary to help those in need and that it is really designed to benefit the big banks! As you read, you’ll see Dean Baker is basically saying that home prices will continue to fall, so doing a loan modification will basically leave up-side down homeowners in a position of paying too much money for an asset that will be worth even less in a year than it is today. Check out the article by clicking on the link below and call me if you have any questions: http://www.democracynow.org/2010/3/29/economist_dean_baker_banks_could_be

Call Jennifer Young at 703-400-6757 or email jennifer@jyhteam.com. Thanks for visiting!

Friday, March 26, 2010

Government Offers Incentives to Lenders to HELP Underwater Homeowners

After months of criticism that it hasn’t done enough to prevent foreclosures, the Obama administration is announcing a plan to reduce the amount some troubled borrowers owe on their home loans. The effort would allow people who owe more on their mortgages than their properties are worth get new loans backed by the Federal Housing Administration, a government agency that insures home loans against default.

This proposal would be funded by $14 billion from the administration’s existing $75 billion foreclosure-prevention program. In addition, the homeowner’s existing mortgage company can get incentives to lower the principal balances on underwater loans. The program also includes assistance to help unemployed homeowners keep paying their mortgages.

Here’s how it would work…Under the plan, lenders would grant three months forbearance to homeowners who are out of work, according to two administration officials. To help borrowers who have been hurt by falling home prices, the government also will require mortgage servicers to consider cutting a loan’s principal if it is up to 15% more than the home is worth, officials said. The principal would be reduced over three years as long as the borrower stays current on payments. In addition, servicers will get more incentives — double the amount the government now pays to lenders — if they reduce the unpaid balance of second loans.

The changes reflect a new attack by the Obama administration to address the foreclosure crisis, which at first was driven by subprime mortgages going delinquent, and now is being fueled by unemployment. The current program provides modified mortgages to homeowners who show proof of income. “The cost is going to depend on the participation rate. In terms of the cost to taxpayers, the cost of not doing something is greater than doing something,” says Scott Talbott, senior vice president for government affairs at the Financial Services Roundtable. “Up to now, there was no government program to help the unemployed, and that was the biggest problem.”

The current federal program, known as the Home Affordable Modification Program (HAMP), is aimed at helping up to 4 million Americans avoid foreclosure. So far, about 170,000 homeowners have been granted permanent modifications with lower monthly payments through the plan.

Also Thursday, the Treasury Department announced new measures that buy time for some borrowers to avoid losing their homes to foreclosure. Lenders soon will be unable to start foreclosures unless they’ve determined borrowers aren’t eligible for a modification.

Other changes announced Thursday will provide other protections for troubled homeowners. They include:

•Ensuring servicers intervene once two or more mortgage payments are missed and actively solicit borrowers for the federal program.

•Setting a 30-day deadline for lenders to decide applications for trial modifications.

•Requiring servicers to consider borrowers who file for bankruptcy-court protection for the HAMP program if the borrower, their lawyer or bankruptcy trustee make a request.

The four big holders of second mortgages —Citigroup, Bank of America , Wells Fargo and JPMorgan Chase — have now joined the government’s program to modify second mortgages. That program was delayed for months but with Citi on board, the major players in the industry are now participating.

Critics have complained that the Obama administration has done little until now to encourage banks to cut borrowers’ principal balances on their primary loans. Nearly one in every three homeowners with a mortgage are “under water” — they owe more than their property is worth — according to Moody’s Economy.com.

Tuesday, March 09, 2010

Manassas Short Sale Approval from Bank of America

Bank of America Short Sale Approval for Manassas, Virginia home. Home owner is upside down but will walk away from mortgage owing nothing to her lender! Call Jennifer Young today if you need help anywhere in Virginia…703-400-6757. Jennifer Young Homes closes, on average, 4-5 short sales per month!

Monday, March 08, 2010

Another Loudoun County Short Sale Approval from Wells Fargo

Home owner is upside down by $125,000 and will walk away from mortgage owing nothing to their lender! Call Jennifer Young today if you need help anywhere in Virginia…703-400-6757.