I don't see the change. Do you see the change? I read new legislative bills and I wonder: Who are they helping? The Helping Families Save Their Homes Act of 2009, signed into law by President Obama on May 20, 2009, purports to strengthen the Hope for Homeowners program implemented October 1, 2008, by former President Bush.
The Hope for Homeowners Program was a joke out of the gate, and it's still a joke. Its purpose was to help 400,000 families stay in their homes. You know how many families that program has helped over the past 7 months? One. According to reputable news sources and the National Association of Realtors: one family.
The change to the Hope for Homeowners Program now lets junior and senior lienholders fully participate in the share-the-equity portion. While this is a great incentive to induce lenders' participation, it's not so great for home owners who can be forced to give away 50% of their equity in an exchange for what amounts to basically debt forgiveness through a refinance.
A separate part of the Helping Families Save Their Homes Act of 2009, providing the loan was federally related, makes banks give tenants 90 days' notice, if the home is sold to an owner occupant. If the home is sold by the bank to an investor, the tenants' lease stays in place. Great news for tenants. Bad news for Sacramento home buyers.
This means if you buy a bank-owned home in Sacramento and intend to occupy it as your primary residence, you might have to wait 3 months to actually move into that new home if tenants live there. OK, 30 days for the escrow plus 2 more months. Does that sound like a good deal to you?
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com
Photo: Big Stock Photo
Elizabeth Weintraub is an author, columnist for The New York Times'-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
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Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
