Real Help, Right Now for Nine Million

The housing crisis in our society does not lend itself to a one-size-fits-all solution. The recent attempt by the Obama administration to fix mortgage problems with its $75 billion dollar plan only aims to help a small percentage of troubled homeowners. Yet, for those who qualify, real help is in sight. If the current solution fits you, reach out and grab it! The President is encouraging anyone who qualifies to take advantage of the refinancing options offered by the plan to maximize its effectiveness. Those who refinance will be able to receive near-historically low rates that could yield them an average of $1,600 to $2,000 a year.

On April 8, surrounded by homeowners who had refinanced, the President said, "The main message we want to send today is there are 7 to 9 million people across the country who right now could be taking advantage of lower mortgage rates. That is money in their pocket." He cautioned people to avoid scam artists who asked for money upfront and directed people to the new government website for a quick analysis of whether they qualify.

Early response to the program has been positive. Fannie Mae refinanced $77 billion in loans in March, double the numbers for February. While foreclosure rates are still high, incentives to encourage the mortgage industry to assist in loan modification will hopefully have some effect.

As anyone who visits the website quickly learns, neither the refinancing nor the loan medication aspect of the program will work for many homeowners, especially those with negative equity or second mortgages. The second mortgage issue is still under debate, to assure that both groups of lenders are treated fairly. The complex underwater mortgage issue will have to be dealt with at some point. For now, the President hones his new role as Salesman-in-Chief to offer help to the first wave of homeowners.

To see if you qualify for current programs, visit the website that www.makinghomeaffordable.gov. For more information about the program, see our previous blog Making Home Affordable Website Answers Consumer Questions.

If you want a great house in Central Florida, Janice Petteway of Exit Real Estate Results will work with you to find one!