Sharpen Your Elbows to Get In on Borrower Bailout
Ah, it was good to see so much detail laid out for the government's new refinance and loan-modification programs for borrowers at risk of foreclosure. The 17 pages of guidelines are government poetry, what with all the acronyms, formulas and step-by-step directions. It makes for lousy reading, but all those details increase the odds that the program will actually work. If you don't believe me, consider the infinitely complicated IRS Form 1040 and its effectiveness at separating you from your money.
If a quick run through this calculator indicates you may qualify for a refinance (available even if falling values have wiped out your equity, as long as you're current on payments) or a loan modification (available if you're behind on payments or on the verge of foreclosure) get your financial documents together quickly and call your lender.
They are going to be swamped with calls. Some of the largest mortgage companies, including Wells Fargo and Bank of America (which is handling old Countrywide loans) have said they are fully on-board with the new government programs. They stand to benefit from having to take fewer empty, devalued homes onto their books, not to mention from the cash rewards they will get from the government when they put borrowers into successful loan workouts. Just don't be surprised if you get busy signals when you call, especially over the next couple of weeks.
What's your take on the new foreclosure-prevention program? Will it help you -- or the economy?
March 5, 2009; 6:00 AM ET
Categories: Foreclosure , Mortgages , The economy , The market
Save & Share: Previous: Wrath and Derision, Just for Wanting to Buy a Home
Next: Surprise! It's a Bailout for Vacation Homes, Too
Posted by: MKVA | March 5, 2009 10:57 PM | Report abuse
Posted by: FederalHomeRetention | March 7, 2009 11:30 AM | Report abuse
The comments to this entry are closed.