Facing a lawsuit, Bank of America Corp. (who now owns Countrywide Financial Corp.) has agreed to modify tens of thousands of loans to keep people in 11 states from losing their homes.
Borrowers with mortgages they can't afford could see their interest rates reduced or have the loan principal cut. Some might qualify for having to pay nothing but interest for a decade. Even people who can't afford to keep their homes with such changes will be able to get help moving to a new home.
If all 50 states were to join, the settlement could provide $8.7 billion in relief to 400,000 borrowers.
The settlement applies to people who obtained their mortgages through Countrywide Financial Corp., which Charlotte, N.C.-based Bank of America purchased in June, at the same time Illinois and California sued the company.
Bank of America is moving towards a launch of the new mortgage aid program in December.
The mortgage aid includes revising customers' payments so they don't exceed 34 percent of income. Other options include reducing interest rates and adjusting principal so that borrowers don't wind up actually losing equity under some payment plans.
We will have to stay tuned and see if other mortgage companies will be willing and able to do the same for their customers. That would be great news to those behind in payments and the communities that these people live in. No one wants these homes to go back to the banks. It's bad for everyone.
Keeping your informed about current market conditions in the Tampa Florida Real Estate Market,
Warmly,
Stephanie LeFew
Valrico Real Estate Professional, Valrico Realtor for you
813-991-1355 / 813-624-3332
Having a hard time selling your vacant house? You may want to consider renting some furniture to give the home a warm feeling. You would be surprised how inexpensive renting a room or two of furniture will be. Current style & nicer furniture can help the potential purchaser envision their furniture in your house.
A stark vacant home or a home that has old "garage sale" type of furniture and accessories can absolutely turn a buyer off. I have experienced it several times with my buyers. I have had buyers state that the seller should have been trying to sell it without the furniture in the home rather than what they had it filled with.
Also, make sure that the home does not feel at all cluttered. It screams that there is not enough storage in the home. They need to feel there is plenty of room to be comfortable. Also, the home should smell nice subtly. Stinky, cigarette smelling, or doggy smelling homes turn off those with allergies especially.
Here is another tip, beeping smoke detectors scream "nobody loves me" about your home.
Try an tasteful artificial flower arrangement in red, orange, and yellow. These colors tend to stimulate a potential buyer.
Of course, very important --- price sells. Someone needs to be looking at it to fall in love with the home. High priced properties help to sell the homes around it, and they won't even look at yours, if you're not careful.
Happy selling!! Please let me know if there is anything that I can assist you with.
Stephanie LeFew
Tampa Real Estate Professional, Tampa Realtor
813-991-1355 / 813-624-3332
The credit markets were nearly frozen. Lenders couldn't lend because they were receiving no payments on existing loans. The legislation allowed the government to buy troubled loans and mortgage securities. The funds that the institutions received when the government purchased the existing portfolios were to be available to issue new mortgages with more carefully specified and monitored lending standards.
The lenders are looking closely at credit score. Now is a best time to increase your credit score. You can ask an ethical mortgage broker to do a rapid rescore. The following activities can pull your credit score down FAST...buying furniture on credit, applying for credit all over...department stores, gas credit cards. If you start getting declinations on credit applications, it shows and affects your credit score adversely.
A tremendous amount of current foreclosures took place when the purchaser did not put any or hardly any money into the purchase of the home. Following the resulting mortgage crisis, lenders now want people to put their own money towards the purchase of the home. The thought is, the bank feels the potential home buyer can afford it, and the new home owner will be less likely to walk or give up if their own money is at stake.
I am here for you. I look forward to hearing from you about the dreams you have for a new home.
Warmly,
Stephanie LeFew
Solaris Realty of Tampa Bay
813-624-3332 cell phone
813-991-1355 home office.
The Senate legislation responded to the criticisms that lenders have been slow and/or unwilling to work with homeowners and borrowers. It encouraged negotiation in short sales and consumer efforts to refinance or reconfigure existing mortgages:
When the Treasury (or other federal agency that holds mortgages) acquires troubled existing mortgages from financial institutions, agencies are required to work with lenders and mortgage servicers to find ways to avoid foreclosures.
All federal agencies are required to work with servicers to facilitate loan modifications that will consider the net present value of the mortgage.
Changes to existing mortgages can include (but are not limited to) revisions in principal, interest rate and period for repayment
If you are behind in your mortgage payments, please let me know if there is any way that I can help you. I can be there for you. You didn't mean to get in this situation. Call someone who can help.
Looking forward to hearing from you,
Warmly,
Stephanie LeFew
813-991-1355 home office
813-624-33323 cell phone
Now is a terrific time to invest in American real estate.
With the American foreclosure market driving down home values, you can purchase a terrific home at deep discount prices. Now is a great time to purchase that upscale beach home or condo.
Imagine yourself enjoying the sun and fun of Florida, splashing in the surf at the beach, doing the backstroke in your relaxing pool watching the incredible Florida sunsets, taking those relaxing walks on the beach with your special someone, knowing that you scooped up a beachfront beauty at a ridiculously low price.
I also offer my international buyers a valuable buyer incentive. Call me anytime to discuss when you would like to shop for your vacation home. Retiring to Florida...beautiful beach scenes, palm trees all in your back yard.
Looking forward to hearing from you.
Warmly,
Stephanie LeFew
813-991-1355 home office
813-624-3332 cell phone
Stephanie LeFew & TampaHomeBuy.com here to serve 1st time home buyers,home buyers,investors,sellers,& sellers who need to sell quickly. I am here to offer my knowledge to you in this changing market.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
