The Helping Families Save Their Homes Act of 2009 is designed to target what is considered as the major cause of the languishing U.S. economy, the housing crisis. The law also brings hope to distressed homeowners who want to save their properties from tax foreclosure property listings inclusion.
There is a consensus in the administration that the law deserves bipartisan support in order to put an end to the growing tax foreclosure property listings, bring relief to almost 8 million homeowners who are in danger of losing their properties to foreclosures and provide respite to neighborhoods suffering from declining home prices.
The law allows distressed homeowners to protect their properties in bankruptcy proceedings and keep them away from tax foreclosure property listings. Under the law, the bankruptcy judge has the authority to write down loan amount owed by distressed homeowners to equal the property???s market value. This provides homeowners a chance to avail of affordable monthly loan payments.
Furthermore, the law modifies the 2008 program, Hope for Homeowners by reducing the refinance monthly payments and streamlining some features of the program to make it accessible to more homeowners who want to keep their homes away from tax foreclosure property listings.
The program allows homeowners to refinance a loan comparative to 96.5 percentage of the property???s current market value. In return for the potential loss that investors will incur due to refinancing, they will be given guarantees for the total amount of the refinance loan.
Additionally, the proposed law serves as a legal safety net for mortgage servicers, those who collect monthly mortgage payment from borrowers. This provision will encourage mortgage providers to work out affordable mortgage terms with owners of distressed properties.
Most mortgage servicers said that the current law hinders them from modifying loans because they are exposed to liabilities when investors object to modification despite its benefits to them.
The law is expected to help thousands of distressed homeowners who want to avoid foreclosures. But at the same time, bankruptcy filings are also expected to increase if the law is enacted because millions of borrowers are currently suffering from the financial crisis.
However, experts believed that bankruptcy courts are well equipped to handle the expected flood of bankruptcy filings from owners who want to keep their properties away from tax foreclosure property listings.
Joseph Smith has been educating buyers on the finer points of tax foreclosure property listings purchase at ForeclosureDeals.com for over ten years. Click here to visit and read more advice on finding foreclosed homes for sale.
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