The Obama administration released the details of their Mortgage Rescue Plan yesterday and you can clickthrough to it here for all of the details.
As stated previously, we think this plan is good for consumers around the US and here in Las Vegas. The government has indicated this program could help or positively impact up to 9 Million homeowners by helping them avoid foreclosure.
The “Home Affordable Refinance” component will rely on Fannie Mae and Freddie Mac to refinance 4 million to 5 million mortgages for borrowers who might otherwise be unable to refinance because their homes have lost value and they have less than 20 percent equity in their property.
The “Home Affordable Modification” component of the initiative will provide insurance and incentives for both borrowers and lenders that the Obama administration hopes will generate 3 million to 4 million loan modifications. This is certainly a massive step in the right direction!
We also believe that more banks will work with homeowners to take advantage of Short Sales moving forward so they do not have to deal with the time and expense of taking possession of a house via the Foreclosure process. We are telling our clients it’s a fluid market and good deals go fast……………
