Bail-Out or Legitimate Program?
"An estimated 240,000 families can avoid foreclosure by refinancing their mortgages using the new FHASecure plan. FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing."If you don't trust the media and believe they have a vested interest and or personal agendas to persuade the public and influence certain outcomes, particularly during an election cycle, visit the HUD link I provided to become more informed about the current plan to help struggling homeowners. Jimmy Carter bailed out Chrysler. Are we bailing out homeowners who made bad choices or is this a proper economic program?
posted by Gene Quinney Owner/Broker at 12:02 PM
5 Comments:
How many delinquent conventional borrowers have staved off foreclosure with the FHASecure program? That was the purpose of the program, not merely to refinance subprime borrowers who were current on their loans -- the regular FHA loan program already does that.
That's correct. I believe it's too early to compile data on the success or failure of the program. Implementation of the program was January 1, 2008. It may take several quarters to acquire the appropriate amount of reporting by lending institutions and governmental agencies to make that determination. According to the plan there are five pre-requisite conditions;
1) A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset;
2) Interest rates must have or will reset between June 2005 and December 2008;
3) Three percent cash or equity in the home;
4) A sustained history of employment; and
5) Sufficient income to make the mortgage payment.
It seems to be an open door program so in the spirit of Shakespeare's "to be, or not to be"--- I would ask..."legitimate, or not legitimate. THAT is the question...
HUD says the FHASecure program is already a huge success: "New HUD data shows program has helped 33,000 homeowners prevent foreclosure in three months," according to the Deaprtment. See:
http://www.fha.gov/about/thousands.cfm
Question: How many delinquent conventional borrowers in YOUR community have been saved from foreclosure by the FHASecure program?
This administration is driving us to the poor house. Trillions spent on a war for oil and religion has put us in this situation.
The information from HUD does not distinguish potential/actual foreclosure borrowers from borrowers merely re-financing to avoid the re-set of their ARM's.
In other words, there has been tens of thousands of "refinances" using this new program but there is yet to be an analysis of those applicants to determine what percentage of those borrowers who refinanced using FHASecure were in fact in, or heading toward foreclosure. This FHASecure program does not limit entry to those facing foreclosure from what I can see...
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