How Do Loan Modification San Diego Homeowners Fit Into The Scheme Of Obama’s Anti Foreclosure Plan?
The new loan modification/finance program established by the Federal Housing Finance Agency (F.H.F.A), which regulates Fannie Mae And Freddie Mac. This will affect loan modification San Diego homeowners. The plan is designed to lower home owner payments to 31% of the borrowers income. This will be done by lowering the borrowers interest rate down as low as 2%. The program could also extend the loan term to 40 years. And as a final option the lender could forgive a portion of the principal on the loan amount owed through a properly negotiated home loan modification agreement.
The downside of this program is that a majority of the homeowners that are in distress will not qualify under Obama’ Anti Foreclosure plan. Under the refinance portion of the plan your home is required to not be under water (upside down) more than 5% of the loan value. The maximum loan refinance allowed would be 105% to loan value.
In California, San Bernardino County more than 30% of homes exceed the new loan limits, and Los Angeles county is 29%. In the Inland Valley, the home values have dropped more than 40% of their value last year alone. Most California homeowners are upside down in their values by more than 5%.
Note: San Diego Homeowners that do not qualify for a refinance will have to negotiate a loan modification San Diego program on their own or hire a loan modification company or an attorney to get their loan modified under the loan modification portion of the plan.
The States that have the highest percentage of homeowners that have a loan that is now worth less than what their loan amount are :
States Homeowners
California 1,901,066
Florida 1,284,679
Michigan 459,365
Ohio 435,107
Arizona 407,604
Nevada 335,340
Source: First American Core logic, Mortgage Bankers Association
The problem
For example- in the state of California, not all loans are guaranteed by Fannie Mae and Freddie Mac, so they re not covered under this program. You will also have to show a means of paying your mortgage. In California the unemployment rate in January was 10.1% and 7.6% nationwide. Unemployment is the major driving force behind the recent number of foreclosures now being reported.
It is estimated that 10.5 million homes are underwater by 5% or more. The problem could get a lot worse before it gets any better. The average homeowners in California, Nevada, Arizona, Florida, Michigan and Ohio may not qualify under the Obama’ anti foreclosure plan and may have to look at another means of a loan modification San Diego homeowners program. It would be advisable to use a qualified loan modification company or a licensed attorney to negotiate on your behalf.
