Potentially vs Realistically

By
Real Estate Agent with Keller Williams Realty DTC

The Associated Press, on Wednesday, released more information about the new FHA program to help homeowners who owe more than their home is worth. "The new program takes a different approach. It allows investors in mortgage-backed securities to evaluate their holdings and select borrowers who will be offered refinanced mortgages guaranteed by the FHA."

Potentially this is a great program that will help everyone. Realistically I think it will mirror the government's mortgage relief program. More people dropped out of the program than were helped. I anticipate mounds of red tape and borrowers to get gouged on the rate and fees. Why should they bother to be competitive when the client is locked in?

I had started talking to a potential client about the FHA Negative Equity program. Even though she is underwater on her mortgage, she wants to do the right thing. She does not want to walk away like some of her neighbors have done. She is trapped in a high rate arm and does not have over $50,000 to bring to the table to refinance. When I explained the new rules, she lost interest quickly. She told me she has talked to the bank for months and nothing has happened with her loan modification. She mentioned she never talks to the same person twice and the bank claims to have never received the documents. 

It will be interesting to see how this plays out. Please let me know your experiences with this. Hopefully there will be success stories we can use to help people.

Best, Chip

Chip Allen

Crestline Mortgage Bankers

A Division of Universal Lending Corp

Direct: 303.947.2109

Fax: 303.987.0676

Loanchip@hotmail.com

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Topic:
ActiveRain Community
Location:
Colorado Denver County Denver
Groups:
Metrolist®
Tags:
dan polimino
chip allen
fuller sothebys
fha program
homeowner
mortgagebacked securities
refinanced mortgage
mortgage
refinance
loan

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Rainmaker
221,210
Scott Baker
Realtor Homes for Sale in Cincinnati, West Chester, Mason, OH Area
www.eHomeReports.com Coldwell Banker West Shell

It will be interesting to see how many people really benefit from the "new and improved" program to help out these folks. Sorry to say it, but maybe the only way out is for them to walk away.

September 14, 2010 07:28 AM
Rainmaker
1,881,545
Roy Kelley
Roy and Dolores Kelley Photographs
Retired Real Estate Broker, Maryland Blogger

Borrowers that have experienced the current programs have much reason to be skeptical. Thanks for sharing.

 Blooming for home buyers.

September 14, 2010 07:30 AM
Rainer
8,776
Doris C. Monticone
CRS., GRI.
Keller Williams Realty

My experience has been the banks are not organized, clients have had to send multiple times there paperwork for modification as well as being shifted to to numerous people.

The banks need to get there act together and begun helping people with the programs.

September 14, 2010 08:36 AM
Anonymous
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Rainmaker
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