Gaining Steam

There is a plan being floated by FDIC Chairwoman, Sheila Bair that would help forestall foreclosures and address what the Bush administration has admitted is one of the "root causes" of our financial crises. The $40 billion proposal would allow the government to give banks a financial incentive to modify troubled mortgages and make the government at least partially responsible for any losses from them if they end up in foreclosure again anyway.

My question is whether this means that our government would be the one foreclosing and eventually evicting people from their homes in the event that they defaulted anyway.

An article in today's Wall Street Journal cites some alarmig predictions predicting that 7.3 million American homeowners are expected to default on their mortgages in the next 2 years with 4.3 million of those losing their homes.

The Federal Housing Administration has weighed in with their $300 billion "Hope for Homeowners" program launched this month. Through this program qualified borrowers who owe more than their homes are worth can get government insurance for a new loan if the lender agrees to reduce the existing balance of their present loan. There is an informational video on the website and you can apply for a new mortgage online.

There's lots of resources available and it seems more are becoming available every day. The key to the whole thing is to DO something. Call your lender and discuss the options. Educate yourself and research the information to find a solution that makes sense for you. If you're confused or unsure how to begin or which direction to take, please call on me. I will make every effort to help you sort out the options and find the one that's right for you.

It is always my pleasure to serve your real estate needs, no matter what they are.