The mortgage refinance boom is over, and many people took advantage of generous offers by banks and lenders desperate to move cash through the economy. Many people saw this as an opportunity to see a new low rate on their mortgage stub and other thought of this opportunity but were unable to refinance due to the lack of equity in their homes. The reality remains that most homeowners are upside down on their mortgages and this makes it difficult to do anything. People simply cannot relocate, they cannot afford to refinance, they cannot use equity as emergency funds. They are simply stuck but Obama claims there is hope.
According to some initial plans that were based on the $800 billion dollar stimulus passed in March, the Obama administration has a new loan process that allows you to refinance up to 110% of your home values at an attractive rate, especially if you took out an adjustable rate mortgage that is about to adjust. The idea behind the plan is to help those that have been smart but have fallen victim to the fallen home prices due to others defaulting.
This legislation has not been approved by congress yet and could never happen but it could drastically help those in need that were financially responsible but fallen victim to those that weren’t. The amount of help main street has gotten has been slim despite banks getting bailouts left and right and offering tax payers very little return for their money. It has come time for the administration to work hard on getting strong plans together to help main street with actual plans that don’t require giving your money to the government after you sell your home.
Related posts:
