The gov has been working on a solution to help avoid foreclosures but I am having a tough time finding the latest news on what the plan is. Can anyone steer me in the right direction?
So far there are no plans that are not bail outs.
Bail outs will destroy the economy.
They need a plan to let people refinance, with no cash back, for a capped rate, but not changing the principle balance.
A bill just passed the Senate which is going to provide millions of dollars to help strapped homeowners (especially subprime) refinance or reorganize their loans to help them be able to afford the loans and keep the house.
President Bush has promised to veto it.
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So far there are no plans that are not bail outs.
Bail outs will destroy the economy.
They need a plan to let people refinance, with no cash back, for a capped rate, but not changing the principle balance.
References :
The best thing to do is talk to your lender. Ask to speak with the loss mitigation department because you want to know what options are available to you. There are several options which include repayment plans, loan modifications, loan reinstatments etc. They want you to get current on your loan just as much as you do, they're losing money by foreclosing on your property. The federal government is more concerned with helping out those people with federal loans like Freddie Mac and Fannie Mae. Unless you have a federal loan, your luck with getting help from the government will be limited to state and local government depending where you live. Be open about your situation with your lender and take all options into consideration. Know the foreclosure process in your area and use bankruptcy as you last resort. Good luck.
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I work for a real estate law firm.
I wouldn't rely on any new laws passing to bring help.
There's a terrific article at eHow on steps you can take now to avoid foreclosure:
http://www.ehow.com/how_2256426_foreclosure-middle-subprime-housing-crisis.html
How to Avoid Foreclosure During the Subprime Crisis
Read through it carefully, follow the steps outlined, and make full use of the Resource links provided.
If it's not too late, you might to look at this one, as well, on renegotiating your mortgage with your bank:
http://www.ehow.com/video_2277196_renegotiate-mortgage-lower-monthly-payments.html
How to Renegotiate Your Mortgage and Lower Your Monthly Payments
Lastly, you might want to check out ways to earn some extra cash
http://www.ehow.com/how_2254361_money-internet.html
How to make money on the internet, scam-free
Hope that helps. Best of luck.
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