Now that the government has passed the $787 Billion dollar economic rescue package, many of us are still not sure how and if this will effect us. One day after the President signed this stimulus package, he introduced a $75 billion dollar Foreclosure Prevention Program that is designed to help keep families in their homes. This program is aimed at aiding borrowers who owe more on their mortgages than their home is currently worth and to help borrowers who are on the verge of foreclosure.
President Obama’s plan would take $50 billion dollars from the existing government financial bail-out money and another $25 billion from government-backed entities such as Freddie Mac and Fannie Mae. This program would allow borrowers to refinance or modify their loan at the current and, in most cases, lower interest rates. Other government incentives will assist in driving down mortgage payments for at–risk mortgages. Previous programs did not offer any help to those homeowners that are already behind on their payments, but this new plan will offer incentives to servicers if they modify these at-risk loans.
Our country's economic crisis affects the majority of its citizens, and though this Foreclosure Prevention Plan will not save every home, it is designed to help save seven to nine million mortgages. Borrowers that have kept current on their mortgages are still affected by the housing crisis, due to the loss of equity in their homes. Many companies and jobs have been lost and in turn the shortfall in tax revenue means less money for schools and public services.
We are all paying a price for the economic crisis. The government is desperately trying to take action geared at stimulating spending and to slow the downward spiral the housing market has been experiencing for the past couple of years. The specific terms and eligibility of the Foreclosure Prevention Program will be available after March 4, 2009. Borrowers should contact their mortgage lender at that time.
The areas around North Highlands & Antelope are still experiencing an increase in the number of homes sold over the past few months. Low prices and low interest rates continue to attract new home buyers and investors. The number of single family homes sold in North Highlands over the past three months is approximately 159, and the number of single family homes sold in Antelope during the same time is approximately 186.
The foreclosure prevention program will not help everyone, but it will hopefully help homeowners stay in their homes with a chance to rebuild their credit. The plan is designed to help prevent the housing market from continuing to wreak havoc on the rest of our economy.