Upside Down Mortgage

Posts Tagged ‘cramdown’

Bankruptcy Judges Modify Mortgages

Question: Obama or McCain. Your money on fighting foreclosure?

McCain:
· Give homeowners the chance to have their loan modified, provided they meet certain criteria.

· Offer of financial assistance to borrowers contingent upon lending reform.

· Provide more funding for community development groups so they can expand their home rescue efforts.

Obama:
· Allow troubled homeowners to refinance to a loan insured by the Federal Housing Administration.

· Allow subprime borrowers to challenge foreclosure proceedings if they've been subjected to abusive lending practices.

· Create a 10% tax credit for homeowners who do not itemize their taxes.

· Create a $10 billion fund to help victims of predatory loans.

· Create a separate $10 billion fund to help state and local governments maintain critical infrastructure.

· Authorize bankruptcy judges to reduce mortgage principal.

Answer: HE IS ANOTHER BUSH. OBAMA !!!!!!!!!!!!!!!!!!!!!!!!!

The "Cramdown" Mortgage Bill

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Mortgage Relief Legislation

Question: Why do DEMOCRATS TRADE OUR TROOPS IN IRAQ FOR DROUGHT RELIEF AND DOMESTIC SPENDING INCREASES?

Why do DEMOCRATS TRADE OUR TROOPS IN IRAQ FOR DROUGHT RELIEF AND DOMESTIC SPENDING INCREASES

In a complicated deal over the war funds, Democrats will include about $11 billion more in domestic spending than Bush has requested, emergency drought relief for the Southeast and legislation to address the subprime mortgage crisis, Hoyer told a meeting of the Washington Post editorial board.

http://www.washingtonpost.com/wp-dyn/content/article/2007/12/07/AR2007120702550.html?hpid=topnews

Answer: because that is what SHOULD be done.

Congressman Sherman discusses mortgage relief legislation on CNBC business panel

Bankruptcy Loan Modification Bill

If your mortgage is under an FHA loan, there may be FHA loan modification options open to you. Many homeowners who are uninformed but on the road to foreclosure fear that FHA home loans are ineligible for modification, but under the Housing and Economic Recovery Act passed in 2008, FHA lenders were given the permission and funding to accommodate loan modification.

FHA loan modification stretches the mortgage through up to a thirty year period with a lower, fixed interest rate to make it possible for millions of homeowners to keep their homes. In order to be eligible for an FHA loan modification, under the Streamlined Modification Program, a homeowner must:

- Be at least three or more months behind on their mortgage payments.

- Not be in bankruptcy.

- Reside in the residence they want the FHA loan modification to cover.

Also, the mortgage must have been taken out prior to January 1, 2008 and the current value of the property must be no less than 90% the initial value.

An FHA loan modification entails: extending the loan for as long as appropriate with the new interest rate, reducing the interest rate to a minimum of 3 percent (if appropriate), and a balloon payment when the loan is paid off, matures, or goes through refinancing.

Loan modification seems to be the answer for millions of homeowners who are on the verge of losing their homes to foreclosure, whether their mortgages are through FHA or other lenders. However, as it stands now homeowners under FHA loans are finding it exceedingly difficult to get loan modifications and steps are being taken to make it easier for everyone to receive loan modification assistance.

Because the FHA loan modification standards under the Housing and Economic Recovery Act are ridiculously strict, the Obama Administration is currently pushing to allow FHA loans to meet other loans' standards under the Home Affordable Modification Program. Many homeowners, under FHA mortgages or otherwise, are living on property which has fallen far below 90 percent of initial purchase value. There are even properties which have fallen to or below 50 percent of their previous value -- quite a far cry from 90 percent.

The FHA loan modification program under the Housing and Economic Recovery Act has fallen flat on its face since its launch in October, helping only handfuls of families across the country. No progress towards recovery for the housing market can be made unless loan modification is made more accessible for those who have property covered by FHA loans.

If you are a homeowner covered by a FHA home loan and your property value has plummeted like the rest of America's, hold on tight. It's going to be a long and bumpy ride for you to recovery

About the Author:

For more information about home loan modifications, visit the #1 loans modification resource on the net: http://HomeLoanModifications101.com

Article Source: ArticlesBase.com - Homeowners Under FHA Loans Have A Long Road To Effective Loan Modification

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