American Housing Rescue and Foreclosure Prevention Act, Real Help Or a Tremendous Joke?
A piece of Legislation called: American Housing Rescue And Foreclosure Prevention Act was passed months ago by the U. S. Congress and signed for President George Bush. Many of my subscribers have been asking me to explain this Act a littler bit in plain English, so they have an idea what it was all about. This is the article I wrote for them.
The United States House of Representatives, months ago passed what they call, the most comprehensive response to the American mortgage crisis, so they said. It is called The American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) and was designed to respond directly to the present crisis facing middle class Homeowners while providing the tools to prevent a repeat of these problems.
The act includes a number of bipartisan bills including measures to modernize the FHA and reform the GSEs, which should offer crucial liquidity to our mortgage markets now, and also support regulation and oversight for the future.
The American Housing Rescue and Foreclosure Prevention Act was designed help homeowners facing foreclosure keep their properties, help other families avoid foreclosures in the future, and help the recovery of areas harmed by empty houses trapped in the foreclosure process.
But wait until you hear this; after the American Housing Rescue and Foreclosure Prevention Act was passed and signed, dozens of amendments has been made to the act, until it finally has so many provisions that it just end up helping only about 1% of the homeowners that really need help the most.
I will cite you a piece of one; here it goes:
Amendment 1: FHA American Housing Rescue and Foreclosure Prevention Act (H.R. 5830). Only primary residences are eligible: NO speculators, investment properties; second or third Mortgages loan in the same property will not be refinanced. This means if you have a second or 3dr mortgage you are on your own.
The truth is that almost 70% of the homeowners facing foreclosure today have a second or 3rd mortgage. So, there you have a big chunk of people that will not get help.
Part 2. Under the American Housing Rescue and Foreclosure Prevention Act each loan will have to be underwritten by an FHA lender on a case-by-case basis. That means the banks will examine and verify income statements, bank accounts, job histories and credit scores. It is going to be as if you are applying for a new Mortgage Loan. You will have to meet all credit criteria to qualify.
Really? It seems to me that they will have a hard time finding homeowners about to lose their homes to foreclosure with perfect credit. It sounds like a very bad joke to me. No wonder less that 1% are actually been help through this act.
Another piece I like is this: American Housing Rescue and Foreclosure Prevention Act GSE Reform (H.R. 1427) borrowers are responsible for paying a lifetime insurance premium to the FHA, which will be 1.5% of the principal annually. Borrowers also agree to share any profits from future home-price appreciation with the FHA. To do that, they will pay a "3% exit fee" of the mortgage principal to the FHA when they resell or refinance.
How convenient are these amendments. It looks to me like this American Housing Rescue and Foreclosure Prevention Act is been tailored to stabilize the FHA. Not the homeowners that are struggling to save their homes.
In conclusion; with the recession that this Country is facing right now, and with the negligent of our Government with programs like the American Housing Rescue and Foreclosure Prevention Act have failed to offer real help to the ones who need it we do not know if any of this programs will ever get to the people who really need help.
Hopefully in the near future maybe, we get some foreclosure relief program that work, but in the meantime you are on you own and you have to find ways to keep your home from foreclosure for as long as you can, so you can take advantage of any possible help that comes along.
The good news is that there are ways for you to stay in your home, and avoid foreclosure for a very long time maybe two years or even more without making even a single mortgage payment, and best of all without having to pay high fees to lawyers or agencies.
You can do it yourself once you learn how to do it and what to do in every situation. Yes, there are many things you can do in order to delay the foreclosure process for years, but Lenders, banks and financial companies, of course do not want you to know this... obviously...
Sant, A. (2008, December 13). American Housing Rescue and Foreclosure Prevention Act, Real Help Or a Tremendous Joke?. Retrieved December 26, 2008, from http://ezinearticles.com/?American-
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