New FHA Bill Passed To Help Homeowners Out
So as of the past week or so a bill has been passed to help homeowners from going into foreclosure. The bill is set to help out close to 400,000 people. I know, I know, only 400,000 people but its a start for this real estate market right? There are a few things in the fine print obviously. So this new bill that has been passed will allow homeowners to refinance their mortgage with a lower payment. The refinance will shift the risk from that of the lender to the FHA. The benefit of the lender is the continuation of the loan while the benefit to the homeowner is the obviously to stay out of foreclosure. So what is the benefit for the FHA? The benefit of the FHA is that if the home owner ever sells his/her property for a profit they must share the profits with the FHA. If they sell for a profit within 1 year they must give it all to the FHA and that amount decreases by 10% for every year for up to 5 years. So regardless, if you refinance with this new loan program and sell your home for a profit, your going to be giving at least half that profit to the government, plain and simple. Not to mention this process is completely volunteering for the lender and you can’t go into this program if you have a home equity loan. Another downside is its goal is only to help 400,000 people which is a fraction of the real estate needy. Will this really help America out? Is this program going to be better than a short sale? Time will only tell. Keep reading. Have a great day.
- Jeff Buettner
Real Estate Wiz Kid
Who can help me buy a home in Scottsdale Arizona?
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