Monday, July 20, 2009

Emergency Mortgage Relief Act

Emergency Mortgage Relief Act-Its Time to Reinstate 1975 Emergency Housing Act… Direct Government Aid to Borrowers Seattle, Washington 7-19-2009
Washington State is in a severe recession and that the sharp downturn in economic activity has driven large numbers of workers into unemployment. It has reduced the incomes of many others as a result of these adverse economic conditions. The areas unemployment rate is at historic highs and continues to rise. The capacity of many homeowners to continue to make mortgage payments has deteriorated and may further deteriorate in the months ahead. Without some intervention, the likelihood of increasing mortgage foreclosures combined with distress sales of homes will continue to cause a downward pressure on property values. Many of these homeowners could retain their homes with temporary financial assistance until economic conditions improve. If you think the only ones being affected by this foreclosure crisis are those losing their homes…think again. Home values are now approximately what they were in 2003. For most of us, this represents a reduction in home values of 25%. The downward spiral of home prices is likely to continue as distressed property owners offer their homes as short sales to avoid foreclosure and lenders continue to add foreclosed inventory into the market. To help put these numbers in perspective, NWMLS reports, as of June 2009, about 41,000 active listings for residential and condos are for sale. According to RealtyTrac, Washington had approximately 28,000 Foreclosure filings between January 2009 and June 2009. The State averaged about 77 foreclosure filings per day and 3.5% of homeowners are at least 90 days delinquent. What We Need is “TARP” for Main Street Congressman Barney Frank, Chairman of the House Financial Services Committee, is holding hearings in Washington on his proposal to spend $2 billion to prevent foreclosures on borrowers who don’t qualify for other mortgage aid programs because they are unemployed or thru illness. The proposal is a revival of a 1975 program called the Emergency Housing Act, which was enacted during a recession. Congressman Frank, would fund this program with the dividends the US government is getting from financial companies that received taxpayer funds from the $700 billion industry bailout. The purpose of this charter is to provide a standby authority which will prevent widespread mortgage foreclosures and distress sales of homes resulting from the temporary loss of employment and income through a program of emergency loans and advances and emergency mortgage relief payments to homeowners to defray mortgage expenses. No doubt this will cause debate. Some might see Frank’s proposal as real relief for financially distressed consumers and calm critics that the government bailout is helping bankers more than people suffering from the country’s financial crisis. Undoubtedly, some will view the program as leaving the taxpayer with a larger hole to fill. Stemming the tide of foreclosures is a critical component to stabilizing the housing market. So it is imperative that the lending industry and government work together to find new approaches to address this issue. I for one would like to know what our elected officials are doing in Washington to address these issues. About HomeSeeker Center HomeSeeker Center (HSC) provides a stable platform for consumers to search for property that reflects the best values in the housing market today. The Company aggregates available Distressed Property Sales, New Construction Homes, and Banked Owned Property and Building Lots in one convenient location. HSC is designed to Assist Distressed Property Owners in understanding options available to them to avoid or prevent foreclosure. HSC specializes in these difficult home sale situations. HSC provides automated real-time market updates combined with its Puget Sound Real Estate Blog to keep savvy consumers informed. Media Contact Information: Donald Sieb 425-931-4665

1 comment:

  1. Thanks alot for sharing this article with us
    but how to fix an upside down mortgage?