The 2009 Housing Bailout Plan (Version 1.0)
February 21, 2009
Yes, the press is buzzing about the Obama Administration’s new foreclosure-prevention plan. So what’s it all about? There are three main elements:
Restructuring: part one of the plan makes available $75 billion of U.S. Treasury funds to restructure the loans of homeowners who are behind, or likely to fall behind, on their mortgage payments. The intent is for lenders to lower the borrower’s monthly payment to 31% of the borrower’s monthly gross income. This does not imply a principal reduction, but could include a reduction in interest rate.
This plan does not apply to investors, or those of us with jumbo mortgages, and the Treasury will not subsidize any mortgage adjustments that require an interest rate below 2% to get to the aforementioned 31% threshold.
Refinancing: the second part of the plan helps homeowners refinance into cheaper loans even if the homeowner is “upside down” on his mortgage. Fannie Mae and Freddie Mac, the quasi-government housing agencies, will refinance up to 105% of the value of the homes already held or guaranteed by Fannie and Freddie.
Recapitalizing: part three adds $200B to the money allocated to Fannie and Freddie in order to keep all this going.
Conclusion: does any of this directly or indirectly affect Danawoods? The answer is yet to be seen. Danawoods has been relatively immune to foreclosures and short payoffs, as compared with other neighborhoods. Low turnover of Danawoods homes in recent years means fewer of us bought our homes near the top of the market. That’s a good thing! Some of us may be able to take advantage of the new bailout plan, which is supposed to be available beginning March 4th, when additional details are also supposed to be available.
For anyone wishing to get a headstart – give us a call or drop us an email. We can help you plan ahead, assist you with valuation on your home, and if you need one, provide a referral to a trustworthy local lender affiliated with Wells Fargo.
Love Where You Live!
February 21, 2009
My signature tag line is “Love where you live…” What do I mean by that?
I wake up each morning unemployed.
That’s what running a small business is all about, right? Next, I begin each “work” day by asking people if they want to move, or to buy or sell real estate. What I do may works for me…knocking on hundred of doors, submitting and responding to ads, calling past clients, friends and acquaintances, and maintaining great real estate websites.
Many tell me they would never move because they love where they live! Admittedly, we live in a phenomenal part of the world, and I am one who really cannot imagine moving any time soon.
Unfortunately, others among us are truly facing unemployment. Our economy is leading many, even those who love their homes and neighbors, to consider selling their homes. Please call me for a confidential consultation. I talked two families OUT of moving last week! Sometimes, you just need to hear another opinion or to learn that there may be other options.
On the other hand, if you would love to live somewhere new…please call me! Now is a phenomenal time to find the home that you will love at a price that you will also love!
“Love where you live…live where you love!
It all begins at home!”
