Good news to the millions of underwater homeowners who need a life raft, vest and an island to hold on to. It looks like Obama has a new refinance program that will assist borrowers with homes worth up to 125% of the current market value.
With the rapid deterioration in real estate markets all over the country, Obama’s refinance plan appears on the surface to be a good option for many underwater homeowners. However, in places like Southern California and Las Vegas where it is common for homes to be at 200-300% of the current values, many will be left in the foreclosure waters to fend for themselves.
The move acknowledges that home prices in many areas have fallen so far that many people were shut out of the program. Some 67% of homeowners in Las Vegas — one of the hardest hit areas where Housing Secretary Shaun Donovan announced the expansion Wednesday — owe more than their homes are worth.
More than one in five borrowers are now underwater, with homes in parts of California and Florida losing more than 50% of their value, according to Zillow.com, a real estate Web site. Some 20 million people own homes worth less than their mortgages.
“The president’s Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today’s announcement we will extend its reach still further,” said Donovan.
This definitely gives hope to many homeowners out there looking to save their homes. I just recommend that you weight the pros and cons before you commit yourself to anything long term in such a volatile market.
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I find it very disheartening that I’ve struggled to make my mortgage payments on time for the last 5-years, but now when we really need it, there is no assistance for us. Because my loan is not through Fannie Mae or Freddie Mac, I can’t take advantage of either a refinance or loan modification program through the government, and because I happen to own an ‘underwater property’, my mortgage lender won’t assist us either. So all of this talk about assistance to home owners is just talk.
Why is it that we can’t get the assistance we need, especially after the big bank bailout? What can we do to get help? For once, I’d like to see the ‘middle class’ get assistance, along side of the poor.
You are right there is no free Fresh Air for US ….
I apply Loan Modifation Since 1/2/09 and now this Monday i got Letter there is no Help for you .,….So where is all damnn Bailout Money ????
NO HELP NO HELP