According to the government, this program will help over 400,000 homeowners. This program will give homeowners a great opportunity to have their homes and keep the family intact.
Mortgage lenders will have the opportunity to take advantage of this program and actually save money. How, you ask? Well they won't have to pay a realtor 6% to sell the property and have the property in the marketplace for another 12-18 months,during this terrible period. Additionally, they will save money on not having to keep the property in a normal condition. [things like, water, power, gardner, etc.]
The lender may benefit from any equity gain in the future, if the homeowner sells the property within 5 years from the closing date of the new FHA loan.
Of course, the current lender will have to take a loss but not as much as they would have caused by the reasons, above.
This program will help alot of people. I am looking forward for the actual details of the fha program in the coming weeks. I will keep you updated on this site.
