Once again we see the government coming out with another smoke and mirror program to try to convince us, the general public, that they are trying to help the catastrophic number of home owners facing foreclosure.
The program is titled "Life Line" and will give an automatic 30 day stay to homeowners facing foreclosure as long as they are 90 days past due. They say this will give individuals time to negotiate to keep their homes - as long as they qualify! Here is the deception - "as long as they qualify"! I did a little investigating and this will do nothing for people who are upside down in their mortgages ( def: individuals who owe more to the bank/mortgage company then the property is worth). This program will work only for people that have more than 10% equity in their homes or willing to come to the closing table with a lump of cash to offset the difference in the spread.
So as you can see this is just another feeble attempt by the government to show that they are trying to something to stop the financial tsunami that is upon us.
We as investor continue to have an awesome opportunity to make a boat load of cash, if we have the proper knowledge and use the proper leveraged techniques and strategies ie: lease options and short sales.
Until next time, may all your deals be profitable.
Tuesday, February 12, 2008
Hope For Home Owners Facing Foreclosure?