Obama Policy Implications for Fresno Homeowners
Posted by Harold Penner on Wednesday, July 14th, 2010 at 4:18pm.March 2009 --
On March 4, 2009, the U.S. Treasury Department released guidelines for a new program to assist homeowners. Here are some of the basics of that program:
View U.S. Treasury Press Release
Refinancing Assistance for Freddie Mac and Fannie Mae Loans:
Typically, owners cannot refinance unless their loan is 80% or lower of current market value. So, for example, if your home is currently worth $200,000, you need to owe less than $160,000 in order to refinance.
With this new program, some homeowners with Freddie Mac or Fannie Mae loans who are current with their payments may be able to refinance as long as their first mortgage is similar or lower than the current market value. This is possible between now and July 2010.
Home Affordable Modification Program:
Assists up to 3 to 4 million at risk homeowners by reducing monthly mortgage payments through interest rate reduction, extension of the term of loan (i.e. 40 year loan instead of 30) or reducing the principal balance. The government will be sharing some of the costs for modifying the loan. The goal would be to adjust payments to between 31% and 38% of the homeowner’s gross income. So, for example, if homeowners currently earn $50,000 annually, the bank and government may be able to adjust your payments to as low as $1,300 per month (PITI).
The key to this program is that each lender must voluntarily choose to participate. Banks may or may not determine that there are sufficient government incentives provided to justify refinancing. And homeowners must request to be reviewed for this program and demonstrate a financial hardship to qualify.
If you feel you qualify, you should contact your lender directly. You can also speak to a HUD approved counselor for free.
Click here to find Fresno HUD approved counselors
FEBRUARY 2009 MARKET STATISTICS* - Fresno and Madera Counties
-
Average Price of Sold Homes in February '08 vs. '09 - $256,519 vs. $148,749
(43% Decrease) -
Sold Homes in February '08 vs. '09 - 388 vs. 716 (Almost Double)
-
# of Foreclosures and Pre-Foreclosures Sold in February '08 vs. '09 - 139 vs. 608 (Increased over 4 times)
-
Avg. Loan Percentage Rate in March '09 – 5.0% (30 Year Fixed)
*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.
| FEATURED LISTING
3 Car Garage! Built in 2000, this Gary McDonald home is located on a Clovis corner lot near Buchanan High School. Recently updated and freshly painted interior with mature landscaping and fruit trees, this is a comfortable, seller-owned home that is available for move-in! |
|
|
Blog Tags
Print
ShareBe the first to comment on this blog entry!