As a follow-up to the post, “Will Obama’s New Mortgage Plan Help Colorado?,” TeamCox Realtors wanted to add a few more thoughts.
Will the government’s latest effort really help our beleaguered housing industry? We remain skeptical of it. Last week, President Obama announced stepped-up refinancing plan to let qualified homeowners refinance mortgages, regardless of how much their homes have dropped in value. This is an expansion of the current HARP program that has only assisted 20% of those the government were trying to help. That is an 80% failure rate! We question what the new ground rules will be with this new program as we have not heard all the details yet but they are promised by November 15th! I will pass those along to you as soon as I have them. This program will only be for those borrowers who have loans serviced by Fannie Mae or Freddie Mac.
Here is what we do know:
- The current LTV must be over 80%
- Borrowers must be current on their mortgage; not have missed any mortgage payments in the last six months and not have missed more than one payment in the last 12 months.
- Homeowner’s must have a FNMA or FHLMC mortgage dated prior to 5/31/2009.If you are a distressed homeowner in Denver, there are many options for you. Please contact TeamCox Realtors at 303-400-6060 if you need help. We are trained to help homeowners avoid foreclosure in Denver.