Five Benefits of the Obama Plan
Examining the Obama Financial Housing is like watching a foreign film. You may not understand it at first, but upon second glance, it starts to make sense. Here are the five main advantages of the plan.
1. The main benefit is that it provides assistance to homeowners who wish to stay in their homes. The sour economy has made it tough for many homeowners to refinance because for most, their equity has dried up and they are unable to do so. This plan also helps those who may have lost income due to the current recession.
2. The Initiative Offers No Aid for Speculators: This initiative will go solely to helping homeowners who commit to make payments to stay in their home " it will not aid speculators or house flippers.
3. It Helps to Protect Neighborhoods: This plan helps to stabilize home prices for all homeowners in a neighborhood. After all, a foreclosed home often reduces the value of the entire neighborhood. The average homeowner could see his or her home value stabilized against declines because fewer homes will fall into foreclosure relative to what would happen absent the Homeowner Stability Initiative.
4. The Plan Proactively Assists Homeowners Not Yet Late on Payments. Oftentimes responsible homeowners who know that their jobs are in jeopardy due to the recession will call their mortgage lender(s) hoping to make some kind of arrangement, only to be told that there is nothing that can be done. Unless a homeowner is in arrears, banks will not listen to their plea for help. This plan offers assistance to homeowners at risk of default despite being current on their mortgage payments.
5. It helps Bring Monthly Payments to Sustainable Levels: The goal of the Homeowner Stability Initiative is to reduce debt for a family to a sustainable (31% of debt to income) level. The Treasury Department will standardize the loan modification guidelines and implement them through Fannie Mae and Freddie Mac. The goal is to create monthly debt payments that will be able to be kept for a long time.
The Financial Stability Plan's goal is to bring back a sense of security to the struggling real estate market. The plan has been designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. Plunging house prices, for example, make it harder for purchasers to obtain new loans " even with good credit, because lenders concerned about the true value of homes, simply refuse to extend credit for fear that they may be in the same situation five years down the road.
Obviously there is much more to the Obama Financial Stability Incentive Plan. There are many components and some involve giving incentives for people who modify loans, lenders who postpone foreclosures and as mentioned earlier, responsible homeowners interested in refinancing into a lower-interest loan.
By helping to modify the loans of millions of hard-pressed homeowners and thus lower their monthly payments, the administration may also be jolting the economy at the same time. The word on the street is to look for June 2009 to be the time for that to start to happen. Who knows? Purchasing a real estate bargain now and holding it as a rental property may prove to be a smarter move than parking the money in an IRA or in the wild and crazy stock market!
1. The main benefit is that it provides assistance to homeowners who wish to stay in their homes. The sour economy has made it tough for many homeowners to refinance because for most, their equity has dried up and they are unable to do so. This plan also helps those who may have lost income due to the current recession.
2. The Initiative Offers No Aid for Speculators: This initiative will go solely to helping homeowners who commit to make payments to stay in their home " it will not aid speculators or house flippers.
3. It Helps to Protect Neighborhoods: This plan helps to stabilize home prices for all homeowners in a neighborhood. After all, a foreclosed home often reduces the value of the entire neighborhood. The average homeowner could see his or her home value stabilized against declines because fewer homes will fall into foreclosure relative to what would happen absent the Homeowner Stability Initiative.
4. The Plan Proactively Assists Homeowners Not Yet Late on Payments. Oftentimes responsible homeowners who know that their jobs are in jeopardy due to the recession will call their mortgage lender(s) hoping to make some kind of arrangement, only to be told that there is nothing that can be done. Unless a homeowner is in arrears, banks will not listen to their plea for help. This plan offers assistance to homeowners at risk of default despite being current on their mortgage payments.
5. It helps Bring Monthly Payments to Sustainable Levels: The goal of the Homeowner Stability Initiative is to reduce debt for a family to a sustainable (31% of debt to income) level. The Treasury Department will standardize the loan modification guidelines and implement them through Fannie Mae and Freddie Mac. The goal is to create monthly debt payments that will be able to be kept for a long time.
The Financial Stability Plan's goal is to bring back a sense of security to the struggling real estate market. The plan has been designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. Plunging house prices, for example, make it harder for purchasers to obtain new loans " even with good credit, because lenders concerned about the true value of homes, simply refuse to extend credit for fear that they may be in the same situation five years down the road.
Obviously there is much more to the Obama Financial Stability Incentive Plan. There are many components and some involve giving incentives for people who modify loans, lenders who postpone foreclosures and as mentioned earlier, responsible homeowners interested in refinancing into a lower-interest loan.
By helping to modify the loans of millions of hard-pressed homeowners and thus lower their monthly payments, the administration may also be jolting the economy at the same time. The word on the street is to look for June 2009 to be the time for that to start to happen. Who knows? Purchasing a real estate bargain now and holding it as a rental property may prove to be a smarter move than parking the money in an IRA or in the wild and crazy stock market!
posted by Debt Consolidation Loan at
10:17 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home