Government release new website Making Home Affordable

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If you are looking to modify your loan or refinance your mortgage, the government created a new tool to help you.  The problem with some home owners is that they make the payments months in and month out, but it keeps getting harder as the economy continues to strain every dollar they have.  The Making Home Affordable Program is suppose to make that easier.  Since today is the first day, we will have to wait to see how successful it really is.  Some programs that have been created are only “feel good” programs to make the public think that home owners are being saved.  Most programs only affect a very small portion of the the troubled home owners.

The other home owner this is trying to help is the ones that cannot make the payments on a consistent basis.  The idea is to help you to re-modify the loan and lower your payments.

Everyone wants to make their home affordable today.  We really need to stop the bleeding first.  I just hope this really helps owners stay in their home and not go to foreclosure.   Click the website and see if you qualify. Let me know how it works out for you.

On Edit:

I went through the website for the loan modification section and it qualifies you based on a few questions.  Then it tells you to make sure you have the following documents and information available;

CHECKLIST

• Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
• Your most recent income tax return.
• Information about your savings and other assets
• Information about your first mortgage, such as your monthly mortgage statement.
• Information about any second mortgage or home equity line of credit on the house.
• Account balances and minimum monthly payments due on all of your credit cards.
• Account balances and monthly payments on all your other debts such as student loans and car loans.
• A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.) if applicable.

It then tells you to contact your mortgage servicer.  It also directs you to the original preforeclosure help website call “Hope Now“  Obvisouly with the bail out of the lenders by taking over 750 billion dollars of bad loans by the government, they are allowing the banks to work a little stress free on their notes that they service.

Bailout help on the way

Many homeowners are under water and it is encouraging to see progress being made on the Bailout plan.  AIG is really pissing upsetting people off with their latest antics.  I just don’t get how CEOs justify this while the business is under water.  How do you plan these parties?  “John, THE check came in…Great, off to Arizona, see you in a week!” Last time I received a windfall it wasn’t spent on a party, it paid the bills.

Back to the consumer side of things; it looks like money from the bailouts will help with loan modifications.  I hope that the loans are modified to current market values.  This will keep home owners in their home.  They have to stop the bleeding at the ground level so that it can filter back into the local economy.  You hear too many stories where people are just getting by and only purchasing the bare minimums.

There are places that you can start looking for help before losing your home to foreclosure.

• FHA Hope Program
• FHA Hope Program – application
• HUD Fact sheet on FHA Loans
• Frederick Community Action Agency
• 1-877-462-7555 or www.mdhope.org
• Last resort – Short Sale

Talk to one of the many councilors available to you to discuss your options.  Frederick and the State of Maryland are available to help you.

Have a great day.

People are not the only ones displaced by foreclosures

I took a trip to the Animal Control building the other day after someone told me about the increase in the amount of animals there. Not only have families had to give up their homes, but also their pets. Not all rentals allow pets and even in financial trouble, people do the right thing and offer them up for adoption. I can’t say that is true of all the animals there, because some were rescued from abandoned homes. Animals left to fend for themselves with no one to care for them. The housing situation is bad enough. These animals just want a new home.

I have two dogs of my own (one right from this shelter) and I know if my wife and daughter read this article, we will have more. So, I am begging you to spread the word and help these animals. I don’t have room for anymore. There is no more room on my bed for another dog and I am allergic to cats. I don’t need a bunny or another hamster.

If my words don’t do it for you…maybe this will…

You can contact Frederick County Animal Control at 301-600-1546 or stop by 1832 Rosemont Ave. While you are at it, fill out this application so you don’t waste any time. (don’t forget your checkbook)

Feel free to share this with others, the link, the presentation, the application…share your home with one of the many animals there too.

And by the way…if you don’t live in Frederick, I am sure this is happening at a shelter near you too.

Really… this should be the easiest fix to the Housing Crisis.

“Suffering in Silence” – Foreclosure outreach

I attended the Frederick Foreclosure Forum last night. The turn out was not as expected. There were only a small handful of consumers looking for answers and guidance. The other 85% were local professionals, city and county personal looking for more resource to help those in need. I kind of expected a low turn out for the consumer side. As part of Thomas Perez’s, the Department of Labor, Licensing and Regulations Secretary, opening speech…This is a humiliating and an embarrassing problem…homeowners are suffering in silence. This problem occurred out of the absence of sufficient regulations in the real estate industry (lending portion.) He could not of said it more bluntly. I couldn’t imagine folks that really need this help, showing up amongst a crowd. I applaud the few that did.

There was a question about the appraisers being held accountable for not predicting this back in 2006. A gentleman from the Emerald Farm area, not in trouble now, but sees the potential when it is time for him to sale in the near future. He feels the appraiser falsely gave value to his home. He believes his home and others on his street are $100,000 less than back in 2006. I know that the Appraisal process is under scrutiny and will have new laws in effect come January 2009. Not sure about $100,000 but we have been experiencing about 1-1.5% depreciation in some neighborhoods. Emerald Farms price drops have been a result of the increase in short sales ranging in price $300-349,000. The home that sold for $349,000 was originally purchased for $360,000 in 2004. One home currently on the market for $300,000 sold back in 2006 for $450,000. A non Arms length transactions should not impact future appraisals but the do impact sellers pricing strategy.

Fernando Herboso, a local real estate agent, wanted to know what the state was doing to help the Hispanic community who are also falling victim to bad loans. He said down in the trenches they are afraid to speak out for fear of being deported and separated from their children. He also went on to explain these are hardworking families that are helping build a community and doing jobs that others will not. They have no place to turn. He spoke of a tragic situation about a woman beaten by her husband with black eyes that was also afraid to speak out. This problem is not only housing related but domestic too. He said they fear of speaking to the police in their community. Perez was appalled by the beaten and said people should not be afraid to speak out against crimes. He then went on speaking about the programs in general that the state offers.

A couple items I took away from this; The Emergency Foreclosure Bill and also the state has a team that investigates the mortgage fraud and mortgage scams. (yes, I did ask the question about the carpetbaggers) Thomas Perez just loves ripping out the signs of these scam-artist that scrape equity off of homes. They also dupe homeowners out of their homes by having them sign a quitclaim deed and “renting” the home back to them until they can get back on their feet. This never happens.

Numbers you need if you or someone you know is facing foreclosure.

1-877-462-7555 or www.mdhope.org

If you think you have been a victim of mortgage fraud or a mortgage foreclosure rescue scam…

1-888-784-0136

Locally Frederick County residents can get free counseling by contacting the Frederick Community Action Agency. You can talk to Joe Baldi or Brad Peterson. They will help you talk to your mortgage company and possibly negotiate a better situation for you. Frederick doesn’t want empty houses in the community either.

One last take away from this meeting was about the rights of tenants. Mary Beth Johnson of the county housing rental assistance, has been seeing a rise in landlords going into foreclosure and the tenants are left on the curb without notice. Scott Borison of Legg Law,LLC, states the tenants have rights and the lease supercedes the foreclosure. But this is only true if they stay in the property. Once they vacate, they have lost their right of possession. (Side note, Scott was instrumental in the drafting of the Emergency Foreclosure Bill for the state)

I am sorry to see the low consumer turn out, but glad I went. The resources that I took away from this forum will help me guide troubled homeowner in the right direction.

Back to my Foreclosure mantra….You have choices, but you have to do something…you can’t ignore it.

Please spread the word…homeowners need to act fast in order to help alleviate some of the problems.

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