Government Unveils Program for Underwater Homeowners

The federal government announced on Monday April 5 that it will give $3,000 in moving expenses to distressed homeowners who do not qualify for the mortgage modification program.

To qualify, owners who are "underwater" and seriously behind in their mortgage payments must expedite the sale of their homes either by a short sale or by simply turning the deed back to the lender which is known as Deed in Lieu of Mortgage.

These processes eliminate the need for a lengthy foreclosure proceeding. The new program will also require lenders to set a minimum bid on properties turned back to them under the program.

The objective is to speed the process and get bad mortgages dealt with sooner rather than later.

More Information is available by clicking this newspaper article from the San Francisco Chronicle:
SFGate.com article on New Government Program for Underwater mortgages

Please e-mail me for a report that list the various alternatives to a foreclosure process.

Visit my website for additional information on real estate in the Mobile Alabama area.

Increased interest rates for fixed rate mortgages

TD, RBC and Laurentian bank have increased their rates for fixed rate mortgages by up to .8% and the other financial institutions will without a doubt follow. The increase of the bond yield is quoted as justification. The entry level market will be effected by this increase, higher priced homes will most likely continue to sell without change.
Variable rate mortgage rates are unchanged.