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how will be foreclosed home owners be helped by the new law

Posted on: 31st Jul, 2008 09:40 am
how will be foreclosed home owners be helped by the new law?

It will affect people in foreclosure process now?
will put a hold to foreclosures ?
hi laura.

welcome to the forum.

precedent bush has signed the housing bill into law and now with the help of the new law the homeowners who cannot afford the monthly payments can refinance into more affordable government-backed loans so that they can avoid foreclosure and need not to lose their homes. it aims to help almost 400,000 delinquent homeowners, and most of them owe more than their property value.

the fha will insure $300 billion in such mortgages; this will be available to the borrowers who showed they could afford a new loan. the mortgage companies will first have to agree to take a large to avoid costly foreclosure.

hope this helps. feel free to ask if you have any further questions.

best of luck,
larry
Posted on: 01st Aug, 2008 02:16 am
Hi Laura,

I think you're taking about the Hope for Homeowners Act, isn't that so? we've had a discussion earlier on this topic. Please check out the page to know how foreclosure victims will benefit from the new law.

Hope that will help you.

God bless you.

Samantha
Posted on: 01st Aug, 2008 05:30 am
Hello Laura,

If I understand correctly, there are some certain requirements that homeowners must meet to qualify for the help in the new bill that has been signed by the President:

"Qualified borrowers must live in their homes and have loans that were issued between January 2005 and June 2007. Additionally, they must be spending at least 31% of their gross monthly income on mortgage debt to be eligible for the program.

They can be up to date on their existing mortgage or in default, but either way borrowers must prove that they will not be able to keep paying their existing mortgage - and attest that they are not deliberately defaulting just to obtain lower payments.

Before homeowners can get FHA-backed mortgages, they must first retire any other debt on the home, such as a home equity loan or line of credit. Borrowers are not permitted to take out another home equity loan for at least five years, unless it's to pay for necessary upkeep on the home.

To get a new home equity loan, borrowers will need approval from the FHA, and total debt cannot exceed 95% of the home's appraised value at the time."

There is a lot more of this info available at

"http://money.cnn.com/2008/07/26/real_estate/housing_rescue_guide/index.html"
just tried to cover your main question.

Let us know if you have more questions.

Good Luck.

[Link deactivated as per the forum rules]
Posted on: 01st Aug, 2008 09:50 am
My home is in forecloser, it is to be sold Aug.22,2008 is there eny help for us.
thank you

270-469-9259
Posted on: 13th Aug, 2008 01:32 pm
Hi Bob,

I must say it's only a few days left. It's hard to avoid the foreclosure now. I mean, do you think the company will negotiate for an alternative or have they already thought of other options? Looks like you wish to save your home but I guess it won't work out that way except that you file a bankruptcy chapter 13 in case you wish to retain the home and continue [paying at least some amount towards the debt.

Know why chapter 13 may be better than foreclosure prior to taking any decision. If you have further doubts, please feel free to ask.

Take Care
Posted on: 14th Aug, 2008 03:49 am
I'm getting divorced, my wife has been living in the house. It's a two year old modular home on a permanent foundation which she has not been taking care of the home. I can't afford the payments, am two months behind. I don't believe I can sell it quick enough to avoid foreclosure. I don't have a lot of other debt. My concern is damaging my credit and/or owing the differnece between what is owed on the loan. If I go bankrupt can I get out of that difference what the house will be sold?
Posted on: 05th Nov, 2008 03:32 pm
Posted on: 05th Nov, 2008 09:42 pm
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