Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

New Mortgagte Law

Posted on: 08th Aug, 2008 12:39 pm
Does anyone know if this new mortgage law signed by President Bush will only help borrows in default, or whether people who are actually in the process of foreclosure will be helped? In other words, I am four months behind on my mortgage, foreclosure has commenced, but I'm well away from any sale, etc....I've reviewed other threads on the mortgage bill and haven't seen this specific question addressed....
I do know how to spell mortgage, sorry for the typo!
Posted on: 08th Aug, 2008 12:40 pm
Hello Kevin W

I am concerned that you have not mentioned if you have already contacted "your lender. Your lender has several options that you may already qualify for to stop your foreclosure. Please be sure to contact your lender and speak to someone within the Loss Mitigation Department and see what workout plan is available to you.

As for the new law that the President signed off on the other day, it is my understanding that this law does not take effect until October 1, 2008. And there are a few eligibility requirements that go along with it, which include:

"....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.".....and

..."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. "....there are more requirements that you may read about at "http://money.cnn.com/2008/07/26/real_estate/housing_rescue_guide/index.htm"

I do sincerely hope that this information has helped, and I would still like to point out to you that you need to be talking to your lender about what can be done to stop your foreclosure. There are options available to you besides foreclosure.

Please let us know if you still have more questions. And visit home-buddies.com to review a free mortgage problem guide that is available.

Good luck.

[Link deactivated as per the forum rules]
Posted on: 08th Aug, 2008 02:44 pm
This law is intended to help all, those in default as well as in foreclosure, you might get help before others as you are in foreclosure. However, your lender has to agree to reduce the loan amount to 90% of current appraissal. You should be good, take it easy..
Posted on: 08th Aug, 2008 02:45 pm
Hi newlaw,

You're right. The new law states that if you're unable to pay for a mortgage, chances are it can be replaced by a 30 year fixed rate loan for up to 90% of your current home value. But what matters is whether the lender or the bank agrees to do so after analyzing your situation.

Hey Kevin,

You'll find more of the new law from the topic: Democratic Home Mortgage Bill .

Thanks
Posted on: 10th Aug, 2008 11:10 pm
Page loaded in 0.084 seconds.