Can homeowners in La Crescenta, Sunland & Tujunga expect help? Maybe!
A perspective: Banks are foreclosing on homes as fast as buyers are buying them in many zip codes. Does that mean the only way to sell a home is to give it back to the bank? Of course not, but it sure complicates things.
La Crescenta, Tujunga, Sunland and Montrose all are experiencing their share of foreclosures but if you live in the Foothills you can relax a little; things are better than they sound in the newspaper. Things aren’t great – but they aren’t nearly as bad in other areas of Southern California.
And now, perhaps, the Feds are going to come “riding to the rescue”…
Various members of Congress hope to introduce a “Help the Homeowner” law.
Nothing is certain and even if Congress passes something it isn’t certain whether the President will sign it into law. If the President opposes it he won’t be alone. Many commentators, politicians and financial analysts worry that a “bailout” will be bad for the country. We’ll see what happens.
At this point a rough outline of the plan looks like this:
- Bank cuts the loan to 85% of the appraised price.
- 5% of the cut goes to FHA to insure the new loan.
- 10% of the the cut goes to the homeowner as “new equity”.
- Additional terms are placed in the loan regarding any futures sale of the property.
Over the years we’ve had other “bailouts”. In various articles we see the Depression era FHA brought up and, much more recently, the “S & L Bailout” of the 80’s. The debate on the pro’s & con’s is always vigorous.
Here is a Gallup poll on the subject:
Please let me know what you think.