Principal Reduction Program for Eligible Oregon Homeowners

By
Mortgage and Lending with Karen Pierce | Housing Counselor |Oregon NMLS 223305

The State of Oregon began accepting applications on June 18, 2012 for one of the Hardest Hit Fund Programs they rolled out as a pilot program in 2011. This is the Loan Refinance Assistance Program, which essentially is a short sale with home retention for eligible homeowners who have experienced a financial hardship which might be addressed with a lower loan amount which would also address negative equity.

Eligible homeowners whose servicers/investors agree may sell their home to the State of Oregon’s representative, and then immediately buy it back for current market value as established by appraisal. They’ll have a new 30 year fixed rate mortgage with an interest rate of 6.00% and no mortgage insurance. 100% financing, no closing costs on either transaction! There will be a forgiveness of debt by the servicer/investor, so with this program as with any short sale, deed-in-lieu of foreclosure or foreclosure we recommend the homeowner seek the counsel of their tax advisor to calculate any potential tax consequences.

This program is for owner occupied single family residences in Jackson or Deschutes Counties only. These two counties suffered the greatest hit with foreclosure and unemployment rates in the State of Oregon.

At this time, Fannie Mae, Freddie Mac and Bank of America are not participating in this program, which unfortunately eliminates a great number of homeowners in these two counties who might find a solution to their financial hardship with this program.

The State of Oregon has an eligibility test on their website which will lead to an “apply now” button when they are accepting applications for this program. Go to www.oregonhomeownerhelp.org for more information. As of this morning (June 19, 2012), there were 8 slots left of the 50 that were opened by the State yesterday.

See you out there!

Posted by

Karen Cooper Southern Oregon|California Mortgage ConsultantKaren Pierce - Housing Counselor/Certified Foreclosure Intervention & Default Counselor

               NMLS #223305

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