The recent Bail Out’s passed by Congress have failed to address the root of our current economic crisis — the drowning homeowner. Up to five million people, if not more, are expected to default on their mortgages in the next upcoming years. As housing values plummet, millions of others who have never missed a mortgage payment risk losing tens of thousands of dollars in home equity values.
The bailout package passed by Congress does virtually nothing to assist troubled homeowners who have recently generated a sudden inability to pay their mortgage obligation. It is incredibly disappointing that provisions previously discussed in both the House and the Senate to help homeowners modify their loans and save their homes from foreclosure have been mostly abandoned. These provisions would have struck at the root of the problem and helped to stop the declining home prices, provided relief through the bankruptcy courts, requiring lenders to offer affordable loan modifications, and unburdening families from fees & taxes associated with restructuring predatory loans.
Instead of expressing a sense of urgency in helping homeowners, Congress has only taken tentative steps to throw borrowers a lifeline. For instance, a new government program called Hope for Homeowners was approved with the aim of helping as many as 400,000 struggling homeowners escape foreclosure, but even before it started this program looked more like a false hope than a good solution. Under the program, the government would have insured up to $300 billion in new, affordable loans for borrowers struggling to pay their mortgages. In order for homeowners to take advantage of the program, the lenders would first have to voluntarily refinance the delinquent mortgages by reducing the loan balances to 90 percent of the respective home’s current market value. This could have turned out to be a win-win situation, allowing lenders to escape the avalanche of foreclosures on the horizon and receive reassurance that they will be paid, but at a Congressional hearing last September, lenders expressed their hesitancy about participating in this program. Lenders such as JPMorgan Chase, Bank of America, Wells Fargo and CitiMortgage, a unit of Citigroup, all expressed opposition to this solution and said they would take other steps to help troubled borrowers, like reducing a loan’s interest rate or extending its repayment term.
In other words, they don’t want to eat the cost of reducing loan balances since they know the tangible asset is your property.
Recent news has shown that their efforts of reducing rates and extending terms have done nothing to stall the cascade of defaults and foreclosures affecting the economy. In addition to this, the value of many of these homes are dropping creating an environment where many home values are significantly less than the mortgage attached to the property. For the homeowner facing the foreclosure process – that’s a recipe for disaster.
Don’t abandon your home with destructive consequences! We are experts at negotiating short sales and stopping the foreclosure process, and we can help you save your credit & assist with all of the paperwork needed to complete every step of your solution. You CAN avoid a foreclosure all-together and start over with your life! Contact us today at www.BuyMySAproperty.com to see how we can help you!