What a Relief!

Photo by Quint Cobb on Flickr.

The Foreclosure Relief Plan perfectly pin-pointed the most affected market. Within the past couple of years, mortgage rates were at their highest. The fact that this plan is aimed at owners who owe at least 80% on their homes, but no more than 105%, makes it clear that Fannie Mae and Freddie Mac are interested in helping the economy and homeowners land back on their feet. Here's why. Recent homebuyers, and by recent we mean within the past two years, took out mortgages when interest rates peaked. Most paid a downpayment, at the very least, of 10%. Therefore, assuming they didn't refinance right away, which they most likely didn't because interest rates continued to increase, they would fall into this category of homeowners (owing between 80% and 105%) that Fannie Mae and Freddie Mac are looking to assist. You may have your doubts, and realize that you are only allowed one modification on your loan, and would rather wait it out. My advice, cut your losses and take advantage of this opportunity while it lasts, because you never know where the economy will end up. Staten Island's foreclosures have been decreasing, and I would push family/friends to refinance in order to continue this positive decline. If this peaks your interest, which it should, you can get more details about the program at NAHB.

- By special guest blogger Ariel Joudai, CPA

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