Will Financial Institutions Embrace

When the Obama administration’s “Housing Affordability and Stability Program” (HASP) was announced last month it came with a lot of hoopla, back-slapping, and smiling politicians. For homeowners burdened by mortgages that continue to spiral out of reach, the announcement brought a degree of relief, hope, and the thought that the government was finally going to do something for the people of Main Street instead of Wall Street.

HASP is made up of two programs, “The Home Affordable Modification” plan and “The Home Affordable Refinance” plan which both get their starts at FNMA (Fannie Mae) and FHLMC (Freddie Mac). The program guidelines are expected then to be accepted and utilized by mortgage lenders across the country. “Expected” is the key word as lenders’ participation in both programs is voluntary as long as long as they did not accept Financial Stability Act funds. It is at this juncture where many homeowners are going to be disappointed to learn that HASP is not going to help them either due to the fact it is not going to be available to them or that, even if available, they’re not eligible because they don’t qualify for it.   

Regarding availability, it is very unlikely that financial institutions not mandated into program and existing outside of the Fannie Mae/ Freddie Mac umbrella are going to voluntarily sign on to the homeowner-friendly guidelines of the plan without receiving additional government concessions. At the heart of the matter is the reluctance of lenders to have loan terms dictated to them in a cookie cutter fashion, especially when those terms would lock in losses on thousands of loans in their collective portfolios. The problem, as the lenders see it, is that while the formula for reducing borrowers’ payments will vary significantly, the four elements in the equation are going to be difficult to swallow. These elements include cutting interest rates to a floor of 2%, maturity extensions out to 40 years, forbearance of missed payments and penalties to the back end of the mortgage, and principle reductions to 90% of appraised value of the home.

Regarding eligibility, homeowners with mortgage balances greater than $729,750, even if they are with Fannie Mae/ Freddie Mac, are excluded from the plan, it’s as simple as that. For homeowners in many metropolitan areas, especially those on either coast, HASP is going to be non-event whether for refi’s or loan modifications.     

Considering the public relations nightmare that would ensue for the already bruised and battered players in the mortgage industry, homeowners should not expect any kind of official announcement from their lenders regarding their non-participation in HASP. Instead, borrowers participation questions are currently being answered by lenders with responses like, “We are examining our options” or “Implementing the guidelines is expected to take some time”.

For homeowners already behind on their mortgage payments, waiting for their lenders to sign on to The Housing Affordability and Stability Program and then ride to the rescue could be a huge mistake. If a lender has not made an announcement regarding their participation in HASP, chances are they are not participating. To learn about your options, call (949) 544 8224 today.

Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter.   Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan

Fast Cash Is Now Possible For Your Short Term Needs

If you are in need of quick cash, but you are not able to pledge collateral, then you can consider payday loans. One such scheme is checking account loans. These schemes are designed to help tenants and homeless. Your checking bank account gives the proof of your employment and you will not have to pledge collateral. There are many USlenders that are providing payday loans. But one must be sure about the originality of a company while dealing. Many lenders just fake around you and charge additional charges. To prevent such things, market search is the best option.

Checking account loans are type of cash advance scheme with the help of which you can borrow cash for your short term needs and can make repayment on next payday. You don’t have to specify the purpose for loan. The loan amount can be used for any purpose like to pay off pending bills, to manage household expenses, to pay tuition fee of your child and there are lots more in this list. These short term loans are idle for the home or vehicle renovation.

You can make up to $1500 just by meeting few simple conditions like an age of above 18 years, nationality of US, an active checking bank account and a paycheck of above $1000. The approval process of this short term scheme is quick. Lenders of these loans are able to approve your application for, in just 24 hours or even less. You get the money deposited directly in your bank account. This means you can solve your financial crunches in a single day. Getting cash on the same day of application is very helpful at the time of emergency.

Repayment is to be made in single installment and loan amount will be deducted from your bank account on next payday. Generally the period of this scheme is 14-31 days but due date can be extended by roll over option. Getting money with bad credit is also easy with the assistance of this scheme. But having bad credit profile, you will have to pay high interest rate as compared to traditional loans.