An announcement concerning homeowners in the United States was made in a news conference on March 6, 2012. President Obama unveiled two new housing initiatives intended to help with government-insured loans and members of the military. This news is huge and could mean significant savings to all of the homeowners it applies to.
The first program will cut mortgage insurance premiums for certain homeowners who refinance an FHA loan into a new one under this new program. In order to qualify for the reduced premiums, a homeowner must be current on a mortgage taken out and insured by FHA before June 1, 2009. Current means no more than one 30-day-late payment in the past six months and no more than two in the past year. This loan must be refinanced into a new FHA-backed mortgage on or after June 11. The new lender is not required to verify homeowner’s income, employment or credit score, and no appraisal is required.
The great news is that the administration estimates that an additional 2 to 3 million homeowners could end up refinancing under its program, allowing these struggling homeowners to start getting back on their feet.
For military members, any service member or veteran whose home has been wrongly foreclosed on since 2006 will receive compensation equal to a minimum of $116,785 plus any home equity lost since the foreclosure. This compensation will come from the mortgage servicers who conducted the foreclosures. In addition, any service member who was wrongly denied the opportunity to refinance will receive a refund of money lost.
Another benefit: The economy itself could be boosted if the average family actually spends the money they are saving on their mortgage!
If you are looking to move to the Savannah, Ga area, take a look at the beautiful homes for sale, and please don’t hesitate to contact me if you have any questions.
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