New Legislation to Help Homeowners Avoid Foreclosure
Today the current administration made good on their promises to help homeowners and other victims of foreclosure.
President Barack Obama signed into law new regulations designed to make it easier for homeowners facing foreclosure to refinance their existing mortgage into a fixed loan with lower payments they can afford.
The new law also targets other victims of foreclosure: renters.
In months past tenants have been given almost no notice to vacate properties, even though they have a signed lease and are current on their rent payments.
These people had absolutely no recourse under the prior legislation.
The law signed today will give force the foreclosing banks to honor any leases on the property.
Renters that are on a month to month basis will have 90 days to find a new residence before having to vacate the property.
The new law works in conjunction with Hope for Homeowners program and other prior legislation.
According to the government, interest rates are down and refinances are up.
Not everyone will qualify for this program as it was designed to target homeowners that are not completely upside down in their mortgage and are losing their home due to either predatory lending practices or as a result of the economy (job loss, etc).
Also, only homeowners that have a Freddie Mac or Fannie Mae loan will be eligible.
For hard hit areas like the Las Vegas real estate market, (the latest data shows that Nevada, specifically the Las Vegas area, has the highest foreclosure rates in the country currently) this law could not have come at a better time.
But even if you do not qualify for government help, there are still options available to you.
Many banks are being inundated with foreclosures and are willing to work with you to keep another one off of their books.
Before just away from your home, contact your lender.
Explain your situation and let them know what you can afford.
If you can not reach an agreement that works for everyone involved, you might also want to consider a short sale.
There are other options available.
There are also free government programs to help you negotiate with your bank, provide answers to common asked questions and provide free advice.
Do not fall victim to companies that offer fast, easy loan renegotiations for a fee.
Often all you get for your money is a foreclosure notice.
To find out if you qualify for government assistance, visit financialstability.
gov and complete the Q & A.
President Barack Obama signed into law new regulations designed to make it easier for homeowners facing foreclosure to refinance their existing mortgage into a fixed loan with lower payments they can afford.
The new law also targets other victims of foreclosure: renters.
In months past tenants have been given almost no notice to vacate properties, even though they have a signed lease and are current on their rent payments.
These people had absolutely no recourse under the prior legislation.
The law signed today will give force the foreclosing banks to honor any leases on the property.
Renters that are on a month to month basis will have 90 days to find a new residence before having to vacate the property.
The new law works in conjunction with Hope for Homeowners program and other prior legislation.
According to the government, interest rates are down and refinances are up.
Not everyone will qualify for this program as it was designed to target homeowners that are not completely upside down in their mortgage and are losing their home due to either predatory lending practices or as a result of the economy (job loss, etc).
Also, only homeowners that have a Freddie Mac or Fannie Mae loan will be eligible.
For hard hit areas like the Las Vegas real estate market, (the latest data shows that Nevada, specifically the Las Vegas area, has the highest foreclosure rates in the country currently) this law could not have come at a better time.
But even if you do not qualify for government help, there are still options available to you.
Many banks are being inundated with foreclosures and are willing to work with you to keep another one off of their books.
Before just away from your home, contact your lender.
Explain your situation and let them know what you can afford.
If you can not reach an agreement that works for everyone involved, you might also want to consider a short sale.
There are other options available.
There are also free government programs to help you negotiate with your bank, provide answers to common asked questions and provide free advice.
Do not fall victim to companies that offer fast, easy loan renegotiations for a fee.
Often all you get for your money is a foreclosure notice.
To find out if you qualify for government assistance, visit financialstability.
gov and complete the Q & A.
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