Bergen County homes have done better than most housing markets in the US. They may have done better but they have not escaped the economic collapse. As a result our home values have depreciated over the past few years. For many homeowners this has created a horrible situation. Their home is not worth what they paid for it.
For homeowners who need to sell their home, many find it impossible to do so. For others no longer can afford the mortgage payment they don’t have enough equity to refinance or sell. Depreciation has made their home worth less than the current market value. Because of this they are faced with foreclosure or a short sale.
To solve this problem with home values the Federal Government has created a solution for some homeowners. This applies to owners who have not dramatically lost value.
On July 1st HUD Secretary Shaun Donovan announced that Fannie Mae and Freddie Mac will begin refinancing mortgages with loan-to-value ratios as much as 125%. This means you can be 25% negative in the value of your house and still refinance. The idea is to try to match the loss of equity to avoid a distress sale. This will work for homeowners who’ve been paying their mortgages and have good credit. The objective is to keep them in their homes.
Keeping people in their homes has a major social impact. It helps to maintain neighborhoods and to stabilize the local real estate market.
While this is just part of the Bergen County housing market, it allows many people to keep their home and helps stabilize real estate values by avoiding foreclosures and short sale transactions.
If this works for you or someone you know, get in touch with a licensed mortgage banker. You need a top level loan officer’s help to qualify for this program; if you need a recommendation, just let me know. With falling home values it’s best to act now before it’s too late for you. Call me at 201-741-8490.
