The Emergency Economic Stabilization Act of 2008 was signed by President Bush into law yesterday.
What can we expect from the bill? (from the National Association of Realtors)
The Bill Will Help Homeowners and Borrowers in St. Louis
The Senate legislation responded to the criticisms that lenders have been slow and/or unwilling to work with homeowners and borrowers. It encouraged negotiation in short sales and consumer efforts to refinance or reconfigure existing mortgages:
1. When the Treasury (or other federal agency that holds mortgages) acquires troubled existing mortgages from financial institutions, agencies are required to work with lenders and mortgage servicers to find ways to avoid foreclosures.
2. All federal agencies are required to work with servicers to facilitate loan modifications that will consider the net present value of the mortgage.
3. Similar refinancing and foreclosure prevention requirements apply to mortgages involving owners of multi-family properties and owners of commercial properties. Policy goal is to assure that tenants don’t lose their residence or their place of business when an owner has problems with the mortgage.
4. Changes to existing mortgages can include (but are not limited to) revisions in principal, interest rate and period for repayment.
Category : Blog
