A Mortgage Principle Reduction for All of Us?

Controversy is arising as the Treasury Department announced some progress in their recent initiative of reducing principle amounts for homeowners in need. Rather than just reducing rates and lengthening loan terms, reducing principal loan amounts as part of the equation seems to be working out. this from the office of the Controller of Currency. The report states that it has gone from 22 reduction actions in the 3rd quarter of 2009 to 6011 actions in the 3rd quarter of this year. It makes sense really, that reducing the principal amount (amount owed on the home) and with the historic low interest rates the payments would be much less, which reduces foreclosures and helps the homeowner. It appears that the government is trying to get the mortgage companies to feel the same pain as the rest of us. After all it was the predatory lending practices that caused the problem to begin with, right!?!

Bank of America beat them to the punch and has already been reducing mortgage principles but only with the mortgages that were the high risk Adjustable Rate Mortgages (ARM) of the people in trouble.

This all sounds good but what about the millions of people that are making their payments on time? Should they also get a mortgage reduction? What happens when the market changes, and it will, will the folks that have continued to make payments and still carry the same principle amount be able to sell their homes? Will they have to bring money to the closing table when they sell? To me, it makes more since to reduce the principles of all the homes that are upside down so we can all start over. This is how it would work...Initiate a government appraisal process that re-evaluates all the homes in each state based on current sales then lower each homeowners principle to that amount. Realistically, the people that were going to foreclose will anyway and when they do it won't be sold as an REO (Bank Owned) property for any less money than they would have gotten and could be sold for more because the home won't be torn up!

The investors are already losing millions of dollars but it could stop the bleeding. This would allow people to start selling their property again giving the investors a chance to get new loans from credit worthy borrowers to offset the losses. That way the folks in trouble can sell their homes out right without damage to their credit and the rest can sell too! Win Win, I say :)

Buford Ga Real estate

Big Mortgage Companies Are Playing Santa Claus

As predicted the larger Banks are putting a hold on foreclosures during the holiday season. Fannie Mae and Freddie Mac the 2 Government controlled mortgage companies are freezing foreclosure evictions for mortgages they own or back from Dec 20th through Jan 3rd.

This news gives more time for distressed owners in Buford Ga real estate and Nationally to get help to save their homes or to sell them.

I haven't heard if the other Banks are jumping on the sleigh as of yet, but I'm feeling better about Christmas this year for everyone in need.

Part 2 Foreclosure Freeze Could Save Your Home?

Last week we discussed 2 steps you can do to help save your home. This week we will discuss the other steps.

Step 3: Organize your personal documents and information. No matter what form of foreclosure alternative you decide upon, it is important that assemble the following documents.

1. Checking and Savings Account Statements

2. Mortgage Statements

3. Your last 2 employment pay stubs

4. Past 2 years of tax returns

5. Hardship letter (I can help you with that)

Having this information ready will greatly increase the process and show the lender you are ready and willing to work with them to resolve your mortgage issues.

Step 4: Contact your lender

No matter what you have heard, Lenders do not want to foreclose on your home. They are not in the home selling business they are in the money lending business. Foreclosures add significant cost to the lender, they are eager to work out a situation. In addition, keep your agent informed. When open lines of communication is established the process is more efficient and challenges can be handled quickly and effectively.

Know your options so to make an informed decision for what is best for you and your family. No one is alone in the process there are millions of families in distress. Please contact someone that knows and understands your options to help. Contact me directly or one of our agents to help. click here for more information on foreclosure help. Buford Ga Real Estate

Freeze on Foreclosures Could Save Your Home?

You may have seen all the news that major lenders have put a temporary halt on Foreclosures. This has caused the press and Politicians to call for a foreclosure freeze or moratorium. Unfortunately this is not the answer and it will not stop homeowners from being foreclosed. In the next few blogs I am going to discuss ways to avoid foreclosure.

Step 1: get a pen and paper and jot down any questions as we go through these steps.

Step 2: consult with a Real Estate Agent that is educated specifically in responding to the foreclosure crisis. I suggest a CDPE (Certified Distressed Property Expert) These agents can advise the best avenue to take and help you understand your options so you can make and informed decision. Studies show that homeowners who get housing counseling are 60% more likely to avoid foreclosure and have their payments lowered significantly than borrowers that go through the process alone. Foreclosure help in Buford Ga

Loving Sunset Cove at Lake Lanier Island

Last weekend Marine Max and Lake Lanier Island put on a fabulous event that offered a tour of the halloween lights at lake lanier Islands and Full Moon fireworks at Sunset Cove. Lake Lanier started the Full Moon events every full Moon that began this Summer 2010. It was so successful that they have decided to extend it through the fall and possibly the winter.

This event encompassed a Halloween party that included a halloween contest, dancing with a great band, food and great fun. this is the first time that the Islands have started including boaters. As a result this series has made a good profit for the Islands and will most likely continue. Just another reason why you should make your home in Buford and Lake Lanier. More on this later!

Welcome to Our Lake Lanier and Buford Georgia Real Estate Blog!

We're glad you stopped by to see the latest news about Buford and Lake Lanier homes. We will fill you in on all the latest happenings in our area and help you find that dream house or condo on the lake!  Check back soon for all kinds of good information!