Montague, Miller & Company Realtors is committed to being the best real estate firm in Central Virginia. Our large coverage area includes most of Central and Piedmont Virginia, with offices in Charlottesville-Albemarle, Downtown Charlottesville, Nelson, Madison, Waynesboro, Amherst, Culpeper, and Orange.
Insider Blog
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We hear from struggling property owner.
May 12, 2008 - The current loan situation became up close and personal for me when I read a response from Karol. She wrote about about her current sub-prime loan: "had no idea what my broker, title company did, nor appraiser, I’m no cheat and knew less than I thought about what I was doing, and sometimes you trust people. who would think that these people would do this to you?" While Karol knows that this program may not help her who would be helped? What could the FHA relief bill mean for struggling homeowners? This bill provides FHA guarantees to lenders. The lender’s in turn make up to 90% loans to the present value."For a homeowner to get a new FHA-backed loan, the holder of the current mortgage would have to accept a loss and take a payment totaling no more than 85 percent of the home's value.
The government would also get a share of profits if the homeowner sold the house in the future and would have to pay the lenders only if homeowners defaulted on FHA-backed mortgages. The Financial Services committee estimates that 1 to 2 percent of the new loans would default, costing the government between $3 billion and $6 billion."
Karol says her family will be OK and they will repay their debt-what should borrowers do to make sure they are getting the best loan for their situation?
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