FHA Trying to help ward-off foreclosures BUT . . . . .
I don't think this is going to be a lot of help in Ventura County.
FHASecure is designed to prevent foreclosures for homeowners who are falling behind because of their adjustable rate mortgages (ARM). They will be offered fixed-rate mortgages BUT 3 conditions apply:
1. The homeowner with an ARM had to be paying on time until the rate was reset and the payments went up.
2. Borrowers (homeowners) will need at least 3% equity (no upside-down borrowers)
3. There are loan limits that top out long before they are a lot of help here in Ventura County. The loan limit for a single-family home is $362,790.
Sorry - FHA - thanks for trying but we need much higher limits here in Ventura County.
Lorraine
posted by Lorraine Burns, Realtor @ 9:14 AM
3 comments
3 Comments:
No the FHA does not need to raise the limits. That would just serve to preserve the artificially inflated prices. Those buyers should have never been allowed to buy properties that they couldn't afford. Loose lending got them into the mess they are in. The return to requiring down payments will "fix" the problem of foreclosures and bring prices into line with incomes.
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Like it or not, we live in a coastal community and we will always have higher prices than middle America. I think the bigger problem with FHA secure is that it requires 3% equity. Most of the homeowners in trouble right now bought in the last couple of years, the height of the market. Home values have come down. I agree, some of these people never should have been allowed to buy, but the majority are hardworking individuals and families that don't deserve to lose their homes. We need more tools to keep those individuals that have worked hard, and made their payments on time, to keep their homes. Nice to see you're still around, Josh.
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