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MacMortgage
70 Posts |
 Posted - 07/30/2008 : 11:44:55 AM
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http://online.wsj.com/article/SB121729020930091567.html
Rescue Package Contains Loophole
That Could Help You Keep Profits
July 28, 2008 8:37 p.m.
If you are in deep trouble on your mortgage, the new housing rescue package may offer you an almost unbelievable second chance. It may make it possible for you to keep your home, slash your loan balance -- and refinance at cheaper rates, thanks to a taxpayer subsidy. The kicker? If the housing market rebounds, thanks to a surprising loophole in the law, you should still be able to pocket nearly all the profits yourself.
<<Read the rest yourself>>
http://online.wsj.com/article/SB121729020930091567.html
The "Plan" was that the homeowner would share in any profits gained from sale with the FHA if they received a principal forgiveness loan proposed in the housing bill, right?
Here's the loophole - refi out of the FHA loan into a conventional before the sale, and then the profits are solely the homeowner's.
If home prices start to appreciate significantly in the coming years (and that's a big if), more than likely these homeowners would qualify for the new loan.
Que' bono? Who benefits? The borrower and their broker who did a stated loan to begin with. The borrower gets to walk away with the proceeds of sale and the proceeds from the prior loan (assuming cash out), the broker gets another loan... and the wheel just keeps on spinning. |
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cspatmon
2148 Posts |
Posted - 07/30/2008 : 12:22:05 PM
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| After 5 years are they abled to refi. |
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MacMortgage
70 Posts |
Posted - 07/30/2008 : 12:27:46 PM
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| Right, which is pretty much how long it will take for property values to rebound. |
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