Yet another plan floated by lawmakers last week would permit 30 million homeowners to refinance their mortgage at record-low rates regardless of their credit history, MSNBC reported
The Democratic plan is the latest sign that help is coming and it may even help stop foreclosure in Miami and throughout South Florida. Hiring a foreclosure defense lawyer in Miami can help assist you in exploring all of the options and determining the best course of action for you and your family.
This latest plan would allow for 30-year, fixed-rate mortgages at the prevailing market rate — which now stands at about 4.3 percent — for anyone seeking to refinance a government-backed loan.
But the plan faces an uphill battle in Congress. If passed, it would be more comprehensive than the narrow efforts so far backed by the Obama Administration. As we reported on our Miami Foreclosure Lawyer Blog, government plans are not right for everyone and statistics show that about half of homeowners who have enrolled in such plans have since dropped out.
In the present market conditions, many homeowners are unable to take advantage of mortgage rates, which are near all-time lows, because of falling home values, declining incomes and tighter lending standards.
Under the new plan, government agencies like Fannie Mae, Freddie Mac, the Federal Housing Administration and the Department of Veteran Affairs, would be directed to refinance mortgages at the request of homeowners. While it would not subsidize negative equity, the plan would permit underwater borrowers to lower monthly payments by refinancing at a lower rate.
If you are facing foreclosure in the Miami area or are considering home-loan modification, short-sale, strategic default or other options in South Florida, contact Barakat, Jacobs & Associates for a confidential appointment to discuss your rights. Call (305) 350-5055.