Though still a long way from becoming the law of the land, the House of Representatives moved an FHA relief bill out of committee. The bill in its current form would guarantee $300 Billion with a B in new mortgages by Government Sponsored Enterprise approved private lenders. The house Financial Services Committee passed the bill with the full House voting this week. This may be a relief and alternative to homeowners who are about to lose their homes to foreclosure. As committee chairman Rep. Barney Frank said, “There are people who made loans that should not have been made; there are some people that were wrong to take the loans out, some wrong to make the loans. If nothing happens the economy suffers.”
What could this mean for struggling homeowners? This bill provides FHA guarantees to lenders. The lender’s in turn make up to 90% loans to the present value. Perhaps this will become an option for troubled loans.
Our central Virginia market is not overwhelmed with foreclosure but as Percy Montague,IV said in his POST, A Tale of Two Markets, if you are the homeowner suffering-then one bad loan is one too many.
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[…] Sacramento Real Estate Blog wrote an interesting post today on House committee passes FHA relief for homeowners.Here’s a quick excerpt…with the full House voting this week. This may be a relief and alternative to homeowners who are about to lose their homes to foreclosure. […]
had no idea what my broker, title company did, nor appraiser, I’m no cheat and knew less than I thought about what I was doing, and sometimes you trust people. whowould think that these people would do this to you. I have three different agreements, half I never signed, one even where the attorney or someone signed my name. I never saw but a possible 10 pages of the entire thing, I paid my mortgage everymonth on time and never should have been put in a subprime loan , and further more I had no idea and was not told upfront that this was what this would be.I purchased in 01 for half of what my now upside down loan is , I feel sick, ashamed, and down right stupid. however this is not some bail out for most of us , not trying to get free ride, as stated i have and still pay on time never a late, have still good credit dont want anything free , but modification the terms to 40yr fixed, I pay what I owe, and so do so many other american families who know it’s only the right thing to do, I believe there should be a recourse for theborrower to get back at the lender after these people should be able to spot a bad loan, how Would I know ifI’m getting a rotten deal when these people draw up two and three different agreements for you to sign sometimes they have you r name and other info typed in, cant believe some of the things they will do, unknownst to you. please stop blaming the borrower,although some of you may be right there are som e speculators out there now, all to be done is to investigate before you help them , anyone for that matter.
with a modification, My family and I will be okay, loan company will get paid as always and also creditors, it just makes it easier for me to pay and less stressful and loosing sleep about the next months bills. I did nothing wrong, when I took this loan I was frauded in the worst way purchased price was upped by$60K just an outright lie, didn’t use my true income, asked me but nothing on contracts, so what did he do? I dont know, my situation I know they were all in cohoots, appraiser, broker, and lender and closing title company, totally robbed of ovver $128.k
[…] House committee passes FHA relief for homeowners. […]
[…] In an earlier Post we decribed this bill as it came out of the House Committee. […]
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