Wow! Imagine a homeowner getting a new mortgage right after foreclosure so he can get his home back. What will this program do to the housing market?
This is part of an article I just read:
It seems that this new ’secret’ program is being tested in many major
markets across the US. The former homeowner is now able to REINSTATE
their mortgage…at the new value as established by the foreclosure sale.
In other words, the negative equity is gone…the second mortgage is
gone….back property taxes paid off…back HOA fees gone. Their new
mortgage amount IS the amount the lender paid at the foreclosure sale!
I want you to think about that for a moment. This means that even AFTER a homeowner missed payments…loses the home to foreclosure…that they can now IMMEDIATELY secure another loan for the homes current market value. WOW!
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