Are you facing foreclosure? There’s HOPE…
The “HOPE for Homeowners Act of 2008″ creates a new, temporary, voluntary program within FHA to back FHA-insured mortgages to distressed borrowers. HOPE is highlighted within the “Housing and Economic Stimulus Act of 2008,” recently signed into law by President Bush. The new mortgages offered by FHA-approved lenders will refinance distressed loans at a significant discount for owner-occupants at risk of losing their homes to foreclosure. In exchange, homeowners will share future appreciation with FHA.
The program is built on five principles:
- Long-term affordability. The program is built on the idea, expressed by Federal Reserve Chairman Bernanke, that creating new equity for troubled homeowners is likely to be a more effective way to avoid foreclosures. New loans will be based on a family’s ability to repay the loan, ensuring affordability and sustainable home ownership.
- No investor or lender bailout. Investors and/or lenders will have to take significant losses in order to benefit from the proceeds of the loans refinanced with government insurance. However, these losses would be less than the losses associated with foreclosure.
- No windfall for borrowers. Borrowers will share their new equity and future appreciation equally with FHA. Borrowers will pay for the FHA insurance.
- Voluntary participation. This will be a voluntary program. No lenders, servicers, or investors will be compelled to participate.
- Restore confidence, liquidity, and transparency.Credit markets are fearful and frozen in part because banks and other financial institutions do not know what their sub-prime mortgages and related securities are worth. The uncertainty is forcing lenders to hoard capital and stop the lending necessary for economic growth. This program will help restore confidence and get markets flowing again.
For more information you can read the Senates post information: here.
For more information on this building, please contact your sales associate Lynn Geyer; 415-517-3179 or lynn@sfcondoprojects.com
