Loan Modification Update
March 6th, 2009 categories: The Market
It was reported on a Honolulu radio station that 6% of Hawaii’s homeowners were having difficulties with making payments on their mortgages. If you are like me, you have been wondering how the proposed Federal loan modification program is going to work to help these people. To this end, the Wall Street Journal had a recent article that outlined some of the proposed rules.
“First, the government will offer financial incentives and subsidies to persuade mortgage-servicing companies to ease up on borrowers who are in financial straits so severe that they risk losing their homes. Borrowers will have to sign affidavits attesting to their financial hardships. In return, they will see their interest rates drop to as low as 2%, their payment periods lengthened, and other modifications aimed at bringing their monthly payments to 31% of their income — commonly considered a reasonable ratio. This program will be limited to first-lien mortgages with outstanding principal balances that don’t exceed $729,750, in the case of single-family homes.”
CLICK HERE TO READ THE WSJ ARTICLE
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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If doing all of the above will work, then let’s get started. Until things turn around, something needs to be done to help.
I found your blog on google and read this great post on loan modification. I just added this site to my Google News Reader. I Look forward to reading more here in the future.