How do you feel this will help or hurt the SS market?
It is my understanding that the proposals are temporary “reprieves” (30 days or so); I suppose this only means a (further) delay in the inevitable for many owners…SS most likely won’t be massively affected, just might take a little longer…IMHO.
30 more days incurs 30 more days of costs to both homeowners and lenders. If homeowners are motivated to sell now, get a 30 days reprieve and wind up at square 1, imagine what the motivation factor will be like in 30 days.
I’m not keen on this new “law” because going into foreclosure is inevitable anyway. The law does not apply to investment homes either. I don’t think it will slow anything down. Homeowners will still seek help before or after the foreclosure proceedings begin. Especially in my area.
Project Lifeline will fail. As did Hope Now Alliance. As did No Child Left Behind. As did the war on drugs. As did every other misguided initiative under the present administration.
We are facing a long period of economic pain and suffering. Get ready, bite the bullet and hunker down. And don’t expect miracle cures from our floundering government.
I would have to agree with swgroup
Project Lifeline, (great name!) is a PR stunt and will not have any real impact. It takes 30 days just to get a fax delivered to the right person in the bank in most cases!
What a crock!
Only those of us in the real estate business understand all the BS - it brings false hope to homeowners and I get real tired of explaining how things really work in real estate to homeowners. They finally get it just a bit before there house is up for auction. :banghead
No, this will HELP the SS market.
HUD approved programs such as HOPE Now and Project Lifeline are sponsored by Lenders and Banks in an attempt to collect on debt owed to them by homeowners.
Homeowners need a professional who is on their side and NOT working for the Lenders. A real advocate is the experienced real estate and mortgage professional in their neighborhood that can stop the harassing phone calls and offer REAL alternatives to foreclosure and bankruptcy.
“Counselors” will only help you fill out financial statements that the lender will need to asses if they can get more money out of you. Lenders affilitated with these programs ultimately want you to keep your gigantic loan and ridiculous interest rates.
What homeowners need to know is that there are alternatives to staying in bad debt. If short selling or giving the keys back to the lender allows a family to survive the recession and start over fresh with a brighter future, that should be at least as important as fulfilling your obligation under the original loan!
That’s why HopeNow only "helped’ 10,000 homeowners. They could only find 10,000 people to “re-swindle” into keeping their massive loans on homes worth much less with penalties and back payments added to their balances.