obama foreclosure rules
The question everyone is considering is how loan modifications will be affected with President Obama’s stimulus package. Let’s begin with what a loan modification actually is. A loan modification, or a loan workout, is an agreement with your bank that may allow you to keep your home, and changes the terms of your current home loan. When borrowers are facing financial difficulty and wanting to keep their home they live in, banks are willing to negotiate and help the borrower.
With the economy posting worse news every day, and with a new President in office, it is clear to everyone that there is an imperative need for something to happen quickly. Before becoming our newest President, President Obama introduced America and the world to his new ideas for a stimulus, which has now been translated into a bill known as The American Recovery and Reinvestment Act. One very important and much discussed aspect of this bill is the mortgage crisis. How will President Obama’s new bill affect loan modifications to help you if you are facing foreclosure?
Right now, the nearly $900 billion bill (HR 1) provides for the following items:
1. $247 billion in tax cuts for working families
2. $165 billion job-introducing investment in infrastructure and science
3. $153 billion job-introducing investment for health
4. $138 billion job-resulting investment for education
5. $82 billion job-making investment for energy independence
6. $21 billion job-resulting investment for small businesses
7. $72 billion to aid Americans hit by economic crisis
8. $10 billion in law enforcement and oversight
Some of the ideas that have been proposed that could have been included or still may be are:
o A moratorium on foreclosures – it could be proposed that troubled borrowers are allowed up to 90 days to keep their homes or work out a new loan modification with their lender.
o Expand credit for home buyers – there is currently a $7,500 tax credit available to first time home buyers. It could be expanded to all home purchases or increased to up to $15,000
o Target mortgage rates near or at 4% – provisions could be introduced to encourage lenders to offer fixed rate mortgages at 4%. Since mortgage rates often times are not and can not ultimately be controlled, the government would be subsidizing the difference between the targeted rate and current mortgage rates.
o More loan modifications – proposed loan modification plans include reducing the current monthly payment for troubled homeowners to 31% of their gross monthly income. The government would assist by sharing lenders losses and pay some of the banks costs.
In President Obama’s new bills, The American Recovery and Reinvestment Act and the Homeowner Affordability and Stability Plan there are items specifically designated to create more successful home loan modifications that could be your answer if you are facing foreclosure.
To determine how the new plan will directly affect your chances of receiving a loan modification order and download the Complete Loan Modification Kit which provides you with all the forms, document templates and how-to guides you will need.
To learn more about the loan modification process please visit: http://www.foreclosuresmedic.com.
How does Protecting Tenants at Foreclosure Act of 2009 works for me as a renter in CA?
These rules changed dramatically on May 20, 2009, when President Obama signed the “Protecting Tenants at Foreclosure Act of 2009.” This legislation provided that leases would survive a foreclosure — meaning the tenant could stay at least until the end of the lease, and that month-to-month tenants would be entitled to 90 days’ notice before having to move out (this notice period is longer than any state’s non-foreclosure notice period, a real boon to tenants)… I am month-to-moth tenant, my question is when does the 90 days’ notice starts? For my case, the notice of auction is on Oct. 13. Does that mean I can stay in the house for 90 days after Oct. 13? Or is it 90 days after a new owner assumes the house? Since the house is foreclosure, do I continue paying my old landlord for the rent?
On the day the house is sold at auction or the offer is accepted as a foreclosure purchase, the buyer can submit the 90-day notice. If the notice is submitted after that day, the 90 days then begins on the day the notice is actually given. However, the tenant must comply with the terms of the original rental agreement or lease for that 90 days (like paying the full rent on time) or else be subject to earlier eviction.
The laws in California also stipulate that if a tenant has a lease with the previous owner, the new owner must honor that lease through it’s completion, unless the new owner plans on occupying that property himself. However, the 90-day rule still applies. And, if the lease ends prior to the 90 days from receipt of the notice, the tenant still has the option of staying the full 90 days. But, since you’re month-to-month, this law doesn’t apply to your situation.
The beginning of foreclosure & bankruptcy Obama Mortgage Plan home foreclosure help still waiting
The Transformative Power of Rick Santelli’s Rant
http://www.JewishWorldReview.com | After the latest round of primaries, some lessons can already be drawn from this political year. Incumbents are not popular, especially Democratic incumbents. Democrats’ big government programs are hugely unpopular.