Category — Mortgage Stimulus

All good things must (and usually do) end, and it’s no secret that the First Time Homebuyer’s Credit expiration date is looming. The National Association of Realtors, along with countless real estate agents and lending institutions are waving the last lap flag in the race to buying a first home. The American Recovery and Reinvestment Act of 2009 allows for up to $8000 tax credit to a first time home buyer that closes a loan on the purchase of a primary residence on or before November 30, 2009. 

The deadline for the First Time Homebuyers $8,000 tax credit is looming, which has many people scrambling to buy a home quickly so they can cash in on their free money too. Realtors, mortgage lenders, the federal government and even individuals believe this incentive has helped to stimulate the housing market.  

After hearing complaints from struggling homeowners who have nowhere else to turn, a CNN investigation has revealed that the Making Home Affordable program isn’t working the way it’s supposed to be working. Based on government estimates, only 231,000 homeowners are taking advantage of a program that almost 4 million homeowners are eligible to use to reduce their mortgage payments.  

While the Obama Administration is devoted to helping homeowners with mortgage relief, which is backed up by the $75 billion it’s earmarked for programs to stop foreclosures, not every mortgage company or loan modification program has the same goal. It seems that some mortgage servicing companies are offering mortgage loan modification programs, but not ones that truly benefit the borrower. For example, one loan servicer was given $195 million in taxpayer incentives to encourage loan modification, but what it’s been offering its customers hasn’t been as sweet of a deal.  

Searching for available refinance options for your mortgage loan? One program recently announced by Fannie Mae to assist homeowners is the DU Refi Plus option. DU Refi Plus, or Desktop Underwriter Plus, is designed specifically for individuals seeking to refinance their current mortgages on property owned throughout America with little to no equity. When a property is successfully refinanced, the monthly mortgage payment is reduced, offering financial relief.