Foreclosure help

Name  Loren Ransier  

Company  RE/MAX Gold

E-mail LRansier@ Gmail.com

Website www.sacramento.me

Cell Phone  (916) 439-3588

Fax (916) 357-9940

A piece of President Obama’s stimulus package contains a potential game changer for homeowners with Alt-A adjustable rate mortgages or others who are in trouble.  The plan would be to create a  ”bad bank” that would serve as a collection point for troubled mortgages.  These mortgages would be re-negotiated and then sold back to private banks for loan servicing. This would lessen foreclosures and their toxic effect on neighborhood values. 

 

An example of how this worked successfully was the FDIC’s take over of Indy Mac last summer.  The FDIC adjusted the mortgages so that troubled homeowners were able to remain in their homes and had lower payments, interest rates, or balance owing.  This stemmed the tide of foreclosure for these individuals. 

Indy Mac was then sold back to investors.  Federal insurance and guarantees were given to the new owners.  

The problem for the Bush Administration, and now the Obama administration, in implementing the “bad bank” concept has been how to value the troubled mortgages.  Short of nationalizing all banks with adjustable rate mortgages some other pricing mechanism needs to be agreed upon to handle these potential toxic assets. 

One extreme idea is to have the FDIC take over and run all US banks. The liability of this mechanism is that the government could end up owning all failing banks forever.  

If you live in the Sacramento Region how does this apply to you? If past performance is an indicator, the foreclose rate is about to sky rocket for those who have adjustable rate mortgages or who have lost a job or seen their hours cut.  If you live in a better neighborhood such as Folsom,  Fair Oaks,  Roseville,  Arden Park,  Sacramento along the River, Granite Bay or El Dorado Hills you will see the beginning of a foreclosure wave that will last for years.  This new wave will be caused by adjustable rate Alt-A and other mortgages which adjust from 2009-2012.  

 Call me for a complimentary book entitled “Foreclosure Solutions – A Homeowners Handbook”: Chapter 1 Do’s & Don’ts, Basic Advice you need to know. Chapter 2  Keeping your Home, Six Strategies to Save your home. Chapter 3  Foreclosure Avoidance  Four strategies to avoid foreclosure. Chapter 4  Consequences of foreclosure. Chapter 5  Deficiencies per IRS. Chapter 6  Using Services of a Pro.  Foreclosure or Short Sale may not be your only alternative.  Call Loren  Ransier (916) 439 -3588 or Visit www.sacramento.me.