Regard to the government's new plan to save homeowners. The new "Streamlined Modification Program" offered by the Federal Home Loan Agency has been created to induce servicers and banks to workout more modifications with homeowners. They currently regulate about 20% of all currently delinquent mortgages. The target date for this project is Dec. 15th, 2008. Here are some quick things to know about eligibility:
Bank/Servicer must volunteer to enter this program
Loan to Value must be 90% or higher
Homeowner must be at least 3 months (90 days) past due on their mortgage payments
Property must be an Owner Occupied property
Homeowner cannot be involved in bankruptcy
Zero chance of permanent principal reduction
To entice servicers and banks to participate, the government will be giving them $800 for every homeowner they help. Most investors will stand to lose significantly more than $800 by entering homeowners into this program. Similar to the Hope for Homeowners program, a previously failed initiative that began on Oct 1st, 2008, there is no real incentive for investors to agree to this situation and many homeowners will likely have to consider destroying their credit to find that they will not qualify for help. If you need more information about this program, please contact me by phone or email.
Regards,
Amy Everett
Account Manager
Diamond Consulting Group
27450 Ynez Road Ste 306
Temecula, CA 92591
866-724-3863
866-453-0588
aeverett@diamondcg.com
