 Want A Free Mortgage Principal Reduction? No You Don't!Friday, November 18, 2011 - Article by: Rich Iacovetta -
Click HERE to watch the video version of this story<p style="margin-top: 10px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; color: rgb(51, 51, 51); font-family: Arial, Helvetica, sans-serif; font-size: 12px; ">California Attorney General Kamala Harris has declared "bring me the head of Ed DeMarco" He's the guy in charge of the FHFA which happens to run Fannie Mae and Freddie Mac. She is insisting that these agencies be required to help <span style="text-decoration: underline; "><a style="text-decoration: none; cursor: pointer; color: rgb(0, 51, 0); " href="http://rmilending.com/waitingisover"><span style="color: rgb(0, 0, 255); ">distressed homeowners</span></a></span> by giving them a permanent mortgage principal reduction that is owed on their mortgages. Not a <span style="text-decoration: underline; "><a style="text-decoration: none; cursor: pointer; color: rgb(0, 51, 0); " href="http://rmilending.com/do-loan-modifications-really-prevent-foreclosure"><span style="color: rgb(0, 0, 255); ">loan modification</span></a></span>, but a principal loan reduction. It just so happens that Kamala is running for reelection next year in California, so this would seem to be a great platform to garner lots of votes. Think about it, if I'm upside down on my mortgage and you tell me you're going to take a hundred thousand dollars offer my loan by giving me a loan reduction, why wouldn't I vote for you? However, will this really solve the problem or just create more in the future? You see, your ability to get a loan in the first place is dependent upon an investor that's willing to purchase mortgage backed securities. Now if you're an investor who's just been told that the collateral of that loan you just purchased has been cut in half, what do you think that's going to do to your confidence to invest in loans again? It's like putting $100 in your bank account today, and having $40 of it taken away overnight. I think the first thought on your mind would be I'm never putting money into that bank again even if they gave you a <span style="text-decoration: underline; "><a style="text-decoration: none; cursor: pointer; color: rgb(0, 51, 0); " href="http://rmilending.com/todays-rates"><span style="color: rgb(0, 0, 255); ">fantastic interest rate</span></a></span>. Either way there is no easy solution to help people with an underwater mortgage, but I'd love to hear you thoughts, so please leave me a comment below. |
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