In our last post we highlighted some of the confusion in the refinance spotlight, and some hope. A post today in the Los Angeles Times: Business ($read it here) announced another attempt by the federal government to get the housing industry woes behind us.
One of the things hindering the purchase of foreclosed homes is the lack of qualified buyers. As homeowners loose their homes to foreclosure they are forced to become renters (or share residence with family and/or friends). Even owners who complete a short sale are removed from the buying population for a period, although generally about 1/2 the time of a foreclosure.
The new plan from the FHA includes assistance for investors that would turn these foreclosed homes into rentals. That would help with the over-inventory of homes coming to market; the fabled ghost inventory. It would help the economy get moving again, and help our neighborhoods. The plan has yet to go before congress and is not expected to be an easy sell, but there is hope.
Another section of the proposed new plan is to streamline the refinance process. Two major gains here would be the reduction of time to get an approval (or rejection) and the added hope that it can actually be done. Today’s processes, even though much improved over previous times, still causes some to just quit, or not even start the process.
Combined with the underwater assistance (see yesterday’s post) the need for a current appraisal is removed. Likewise the income verifications; simply proof of a job. One requirement for all this streamlining is that the payments be current on the home mortgage.
How does this effect you? Do you have questions about YOUR best action? Contact us today for your free, no obligation consultation.
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