Save Your House From Foreclosure

By admin • November 5, 2008

SaveYourHouse The Richmond Times Dispatch reported in “Federal mortgage plan may benefit you, with debt reductions for many, someone will have to absorb loss in values”

The federal government’s Hope for Homeowners plan started Oct. 1, and a “proactive home-retention program” for some Countrywide customers will begin by December.

Both initiatives promise to help qualified homeowners avoid foreclosure by giving them lower monthly house payments.

About 8,000 borrowers in Virginia who took out risky mortgages through Countrywide will be eligible for cheaper loans. . . . .

“The [Hope for Homeowners] program is a compassionate means to assist those homeowners who under other circumstances might be able to refinance out of their excessive housing debt,” said David Downs, director of the Kornblau Institute of real estate at Virginia Commonwealth University.

“Unfortunately, this program is not a win-win for all parties,” Downs said. “One aspect of the program involves a reduction in the outstanding debt for the consumer. Someone, and it could be your pension plan as an investor, is going to lose that value.”

Here is how the program will work according the the article:

If a lender can be persuaded to participate in Hope for Homeowners, here’s how it would work: The lender would forgive all the debt over 90 percent of the home’s currently appraised value, and allow the homeowner to refinance with an FHA-insured mortgage.

Borrowers who take advantage of Hope for Homeowners will have to share their house price appreciation with the government when they refinance the loan or sell the house.

Depending on how long they have the loan, they will have to give the government as little as half and as much as all of the gain in the home’s value.

To qualify:

The program is only available to owner occupants and will offer 30-year fixed rate mortgages. Other criteria the borrower must meet include:

The home is their primary residence, and they have no ownership interest in any other residential property, such as second homes.

Their existing mortgage was originated on or before January 1, 2008, and they have made at least six payments.

They are not able to pay their existing mortgage without help.

As of March 2008, their total monthly mortgage payments due were more than 31 percent of their gross monthly income.

They certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide material false information to obtain their existing mortgage(s).

This is an option for you to help you save your house from foreclosure in Richmond VA. In fact, you should try it first. It is one of your many options to avoid foreclosure in Virginia.

If you find that you cannot save your house through this loan modification, give us a call at 804/915-9475. We are professional home buyers and we might be able to buy your house. We will not buy it and lease the house back to you. That is not allowed in VA.

If you don’t want to call, simply fill out this form and we’ll attempt to help you sell your house fast.