Help For Struggling HomeownersThe local Jacksonville movers just heard of the latest news surrounding the real estate situation in the U.S. According to an article recently posted on Housingwatch.com, President Obama, with Nevada Senator Harry Reid by his side, just announced a Plan B for the five states that were hit the hardest by the housing crisis. These states include Nevada, Florida, Michigan, California and Arizona. The President is allocating an extra $1.5 billion in aid to these states, allowing them to spend it however they choose.
The article continues to say that compared to the $50 billion that the feds already gave to the Home Affordable Modification Program, it’s not much. However, this can be the first step to help homeowners who are having a hard time right now paying their mortgages every month. The article on Housingwatch.com quotes President Obama: “This fund is going to help out-of-work homeowners avoid preventable foreclosures. And it will help homeowners who owe more than their homes are worth find a way to pay their mortgages that works for both the borrowers and the lenders alike, and will help folks who've taken out a second mortgage modify their loans.”
In the five states getting these funds, All My Sons of Jacksonville learnt that the home prices have dropped more than 20% since the real estate market’s peak. When people owe more than their homes are worth then it seems like there are no options and foreclosures seem to be the only way out. What makes the states including Nevada, Florida, Michigan, California and Arizona even more vulnerable is that during the real estate boom, there was a lot of speculative overbuilding.
Also, a lot of these homeowners who have borrowed money from the banks, especially in California, also have a second mortgage, typically used to reduce or even eliminate the down payment on the house. So when they apply for a loan modification, even if the bank is interested in reducing the principal they owe, it’s illegal unless the second lender either agrees to it isn’t in the picture anymore.
Each state will decide how they will devise these extra funds they are getting. In California’s case, might try to get second mortgages out of the way. According to this article, in California, every month, close to 30,000 borrowers get their first notice that they’re heading towards foreclosure.
A lot of people are struggling in today’s economy to make it work. To pay their bills and keep their homes. If you live in the Jacksonville area, and have to move out of your current home for any reason, let All My Sons of Jacksonville reduce the stress of moving for you. Our Jacksonville movers will take care of everything in a professional manner and you won’t have to worry about a thing in terms of your residential move.