foreclosure plan won’t help those most in need

taps65 at 03:35 2009-02-24 said:

James Rossman at 04:01 2009-02-24 said:

This plan will reach many home owners. I need your support and help in directing this plan to the lobbyist that can get a bill written and passed using it. FNMA, Freddie Mac, VA and FHA should allow all licensed originators to refinance as many loans as possible for any citizen under the following conditions:

Please go to You Tube: “Rossman Foreclosure” to see this proposal. I placed it on You Tube in March of 2008. It makes more sense everyday. A summary of the content is attached.

1. Refinance any exiting 1st and/or combine a 1st and 2nd mortgage loan on and primary residences into one new loan. a. FHA, VA, Conventional, Prime and Subprime loans. 2. The loan being paid off would have to have been originated at least two year prior to getting approved for the new one. 3. No appraised value would be considered in evaluating the borrower, but an appraisal could be used in order to value the loan that is being paid off. The value must be ignored for the new loan and the appraisal, in this case would be looked at to determine property condition and if it is being maintained and occupied. 4. The new payment, PITI would have to decrease by at least $100 per month. a. If the mortgage holder has an Option Arm the new payment the new payment must be at least $200 per month lower than the interest only payment option on the existing loan. 5. The home would have to have been in the original note signers name for a period of at least 24 months. 6. The borrower could not be over 90 days past due when the application is taken. 7. It could allow for the new loan amount to include an amount that would include the existing debt on the property, any back taxes escrow shortages, up to three months in payments that the current owner might be behind and reasonable closing cost and pre-paid expenses. a. By financing the pre-paid items many people would be allowed a month’s grace period before the new lower house payment would start. 8. The new loan would have to be on a fixed rate with a term of not less than 30 years in order to keep the payments as low as possible. 9. No income or job requirements (without this rule the plan will not work as it will not reach enough people to make the needed impact)

Without this type of financing to help the average American this problem will escalate and values will continue to fall, and tens of millions of existing loans will be foreclosed.

The monies used to finance these properties would be paying off loans currently held by banks which would help their balance sheets. Banks might save billions in monies otherwise lost or needed to be purchased with our tax dollars. Our economy would have a chance to prosper, as homeowners would now have more expendable cash. Property values should start to stabilize and even increase. In my view this is the best way to stimulate the economy with out writing a check to every American. Keep in mind that our housing industry is larger than our auto industry. The most expensive purchase of an American is thier home.

James P. Rossman / Branch Manager Advisor’s Mortgage LLC. 404 Main Street Elk River, MN 55330 763-441-9077 Permalink