Homeowners who are having trouble staying current on their mortgages may get some help from the Economic Stabilization Act. The law authorizes the government to work with mortgage servicers and struggling borrowers to modify the loan terms on the mortgages the government owns.
The new law expands the FHA homeownership program as part of the economic stimulus package. Under that program, borrowers facing foreclosure can refinance into FHA backed financing IF the original lender writes down the balance of the mortgage to the current market value,. In some instances, the current market value may be greater than the short sale offers being made from investors to the banks. Another benefit is that current homeowners would get to keep their property at today's market value. And if history has taught us anything - it's taught us that property values WILL rise again.
This program is DEFINITELY something owners should consider and address with lenders should they find themselves having trouble staying current with their mortgage and facing possible foreclosure.
Labels: Business, Condos, Credit Partners, Deals, Finance, Florida, Florida Panhandle, Foreclosure, Investment, Panama City, Real Estate, Short Sale, Vacation
