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I dont know much about the New Housing Loan bill just signed into effect. It does not directly effect me as I am not a homeowner. But I have learned that in some capacity, everything effects me!
So...browsing on another forum, I found these stipulations regarding the new loan...
"the new Housing Bill is not a government loan program. It designed to provide lenders with guidelines for holding the workouts to a standardized set of criteria. It's not a give-a-way program for borrowers...here's a snippet from the NYT's review of a few days ago.
'Lenders are not required to give you a better deal under the new law, even if you do meet the qualifications. They may not be willing to negotiate unless they think you are truly on the cusp of foreclosure.
If you manage to get a new loan, you cannot take out a home equity loan for at least five years after you get the new mortgage. You will also have to pay a 1.5 percent fee each year on the remaining balance. Finally, you have to hand over no less than 50 percent of any appreciation on the home to the government once you sell. Sell the house in less than five years, and you will have to turn over as much as all of the gain.' "
This seems like a whole new way of property management! If a person is granted this loan and still forecloses, then the government will get the house?
What will the govt do with it? Sell it to a bank? Set up their own realtor site?
Is this really going to save alot of people from forclosure?
So...browsing on another forum, I found these stipulations regarding the new loan...
"the new Housing Bill is not a government loan program. It designed to provide lenders with guidelines for holding the workouts to a standardized set of criteria. It's not a give-a-way program for borrowers...here's a snippet from the NYT's review of a few days ago.
'Lenders are not required to give you a better deal under the new law, even if you do meet the qualifications. They may not be willing to negotiate unless they think you are truly on the cusp of foreclosure.
If you manage to get a new loan, you cannot take out a home equity loan for at least five years after you get the new mortgage. You will also have to pay a 1.5 percent fee each year on the remaining balance. Finally, you have to hand over no less than 50 percent of any appreciation on the home to the government once you sell. Sell the house in less than five years, and you will have to turn over as much as all of the gain.' "
This seems like a whole new way of property management! If a person is granted this loan and still forecloses, then the government will get the house?
What will the govt do with it? Sell it to a bank? Set up their own realtor site?
Is this really going to save alot of people from forclosure?