Loan Modification-Foreclosure

The administration is at it again, Treasury granting almost unlimited credit access to FannieMae and FreddieMac, presumably because they have demonstrated an uncanny ability to mismanage the assets under their management. While this is bad news for taxpayers, since this credit line is directly added to the national debt, for those in trouble with their mortgage, this money will likely be used to fund a new program to help forestall foreclosures. Called the Home Affordable Foreclosure Alternative Program, (HAFA), it's scheduled to become effective April 5, 2010, although some lenders may implement it earlier. If you are troubled in any way with your mortgage you should read this article, linked here.
We're in the process of putting together a small booklet dealing with mortgage issues which should be available soon. We intend to SELL the booklet for about $10, little enough to learn something as important as handling the trauma of default and the threat of foreclosure. Too many sites offer services for some pretty hefty fees, walking away from foreclosure, loan modification, etc., and we thought it would be good for people to have an informational booklet to help them make informed decisions, absent the pressure of someone trying to sell something.
We'll try to keep the buyers updated as events change. We're not even printed yet and already the site liked above has been added and the news was just released 12/01/2009.
Anyway. 2009 is winding to a close and we have an administration and Congress seemingly determined to bankrupt the economy. We hear the expression "spending like a drunken sailor", usually quickly followed by someone noting that the sailor is at least spending his own money. The tone deaf among the politicians are likely to be among the unemployed soon, and even though unemployment figures are high, another 500 or so won't hurt anything. Wouldn't it be nice if even failing to throw the rascals out we could find some way to keep them home for six months or so?
Real estate is still in the tank, foreclosures are high and going higher, and too many of recorded existing home sales are comprised of distress sales. Interest rates are low, loans are tough to get, almost 95% of loans are government guarantee programs, and that is not going to change anytime soon. Banks can borrow for almost 0% interest and can loan to the government for 2-3% risk free. Why would they take on risky real estate mortgages? Well that's pretty easy to answer.
Even if your mortgage is not a problem you'll likely find the above link entertaining. This will have an impact on the value of your home, and on your taxes.
Very best wishes for a successful and healthy new year.
As usual, thanks for visiting.