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Real Estate News Releases
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(EMAILWIRE.COM, July 30, 2008 ) SAN FRANCISCO, CA – Democrats in congress are hoping to influence regulatory agencies and mortgage lenders and banks who make mortgage loans to actually make meaningful mortgage loan relief programs such as refinancing programs based on current home values even though the President has not yet signed housing rescue legislation.
According to government statistics, up to 400,000 home owners would be able to take advantage of the new legislation passed on Saturday by the US Senate that would ask mortgage lenders to write down principal balance that they are owed to reflect current market conditions. But, many housing industry watchers suspect that far fewer homeowners might end up being helped. According to www.RealtyTrac.com 739,714 homesowners received some sort of delinquency notice related to possible foreclosure in the second quarter of 2008.
The legislation contains provisions that will create a program to be administered by the Federal Housing Administration, part of HUD, and will create insurance for up to $300 billion in refinanced 30-year, fixed rate loans. These mortgage loan cannot for greater than 90% of a home's current appraised value. For mortgages where the borrower owes more than the home is currently worth on the open market, the lender would have to agree to reduce the principal amount owed to the 90% level. The borrower in such a refinancing program would have to share the value of the loan by half with the FHA if it eventually goes up in value.
The program is slated to start Oct. 1 and end Sept. 30, 2011. Mortgage borrowers will not be permitted to refinance if they purposely missed their loan payments or they pay less than 31% of their income as a loan payment. This is supposedly to ensure that people who actually can afford to make their payments do in fact do so.
Real estate and foreclosure expert Patrick McGilvray, J.D., president of www.TheHomeBuyingCenter.com, a business that matches homeowners looking for a we buy houses company with real estate investors and real estate agents specializing in short sales, said of the legislation, “The banks will have to agree to write down loans that they should not have made in the first place, and this has been something they have resisted since the market began to decline in 2005.”
McGilvray added, “millions of American homeowners bought homes between 2003 and 2006 at extremely over-inflated values, and now the real estate market is reflecting that reality.”
The Senate approved the legislation 72-13 and the House of Representatives passed it 272-152.
This press release was issued through GroupWeb EmailWire.Com. For more information on unlimited press release distribution service, go to http://www.emailwire.com
www.TheHomeBuyingCenter.com
Patrick McGilvray
916-821-6200
patrick at thehomebuyingcenter.com 
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