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How to find out if you can benefit directly from Federal Government’s foreclosure program?

March 4th, 2009 · No Comments

The Obama administration today released guidelines of its massive foreclosure prevention program and it includes a refinancing program for homeowners with little equity in their homes and a loan modification effort for borrowers at risk of losing their homes. Washington Post web site has a calculator that will estimate if you’ll be eligible for this program. Try it out.

My initial assessment:

  1. if you’re a responsible borrower who currently has 20% or more equity in your house, you’ll be out of luck. This program will not benefit the most responsible borrowers – people who put in a lot of equity, and bought houses that they could afford.
  2. Some mortgage brokers will make good amount of money. Honestly, I wish this program is administered via Internet, and bypassing mortgage brokers. Unfortunately, it won’t be the case. Some amount of tax payer money will go to mortgage brokers, who is partially responsible for the current mess we’re in.
  3. Looking at the details of the programs, I’m not sure how it’ll help solve the fundamental cause of our current financial crisis.

I’m neither democrat nor republican. But, I’m concerned about what I’m seeing and hearing today …

Tags: Beat Recession · Real Estate Concerns

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