Part two of the amendments is as follows…
Under the American Housing Rescue and Foreclosure Prevention Act each loan considered for foreclosure prevention will have to be taken on by an FHA lender reviewed on an individual basis. So the banks in Chandler, Arizona still hold the power as they can help or hurt you in your search for foreclosure prevention by reviewing your credit scores, pay stubs, tax returns and other relevant data. This is really no different than applying for a new mortgage! You will be required to meet much of the same criteria to qualify for the foreclosure prevention act.
Does that make sense? While we are not mortgage lenders, it would appear that foreclosure prevention is not in your future if you do not have a near perfect credit score. Isn’t this really just a cruel joke, rather than an act of congress to help thousands of Americans? It stands to reason that just one percent of the people seeking foreclosure prevention can qualify for this program.
Another interesting note from this program…
American Housing Rescue and Foreclosure Prevention Act GSE Reform (H.R. 1427) borrowers are responsible for paying a lifetime insurance premium to the FHA, which your government decided will be a robust one and a half percent of the annual principal. Users of this foreclosure prevention act must also agree that if they sell their home for a profit in the future, they will share that profit with the FHA. In order to facilitate this, home owners will pay a three percent “exit fee” of the mortgage when they sell or refinance their property if they chose to use the foreclosure prevention act.
How useful are these amendments to the people in Chandler, AZ looking for foreclosure prevention help? From the outside looking in, it would appear that the foreclosure prevention act is aimed at helping the FHA be more stable in the future, rather than helping the home owners that are looking for foreclosure prevention and trying to save their families homes.
To sum it all up, with the deep recession that this country is in right now and considering the gross negligence of our Government with their ridiculous programs like the American Housing Rescue and Foreclosure Prevention Act, they have failed the American people. There is really no offer of real foreclosure prevention help to the people who need it most. There is very little likelihood that this foreclosure prevention program will ever get to the people that can actually benefit from using it.
Perhaps, with the new administration, the American public can find a foreclosure prevention program that will really work FOR them. However, between now and the advent of any government program that can really help us, you are very much standing alone in your search for a foreclosure prevention method that will truly work for you.
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