What is Emergency Mortgage Relief?

Now that people have heard about the Emergency Relief Act,
you may wonder what it is and what does it do...

So, let's look at excerpts of the government document to see
why the law was written and who qualifies for relief from foreclosure
of their home under Emergency Mortgage Relief.

12 USC CHAPTER 28 - EMERGENCY MORTGAGE RELIEF                                     
01/03/2007

STATUTE-
(a) The Congress finds that -

(1) the Nation is in a severe recession and that the sharp
downturn in economic activity has driven large numbers of
workers into unemployment and has reduced the incomes
of many others

(2) as a result of these adverse economic conditions the
capacity of many homeowners to continue to make mortgage
payments has deteriorated and may further deteriorate
in the months aheadleading to the possibility of widespread
mortgage foreclosures and distress sales of homes; and


(3) many of these homeowners could retain their homes with
with temporary financial assistance until economic
conditions improve

(b) It is the purpose of this chapter to provide a
standby authority which will prevent widespread mortgage 
foreclosures and distress sales of homes
resulting from the temporary 
loss of employment and income through a program of
emergency loans and advances and emergency mortgage relief
payments to homeowners to defray mortgage expenses.

So, the Law is written, basically, to prevent the
"possibility of widespread mortgage foreclosures and
distress sales of homes..."

Since the homeowner has only one home this was obviously
written to provide some solutions for the Lenders and
Loan Servicers of the mortgages...

Next, let's look at how the Homeowner can qualify for any
mortgage relief...

Sec. 2702. MORTGAGES ELIGIBLE FOR ASSISTANCE

-STATUTE-
 No assistance shall be extended with respect
to any mortgage under this chapter unless -

(1) the holder of the mortgage has indicated 
        to the mortgagor its intention to foreclose;

(2) the mortgagor and holder of the mortgage have
indicated in writing to the Secretary of Housing and
Urban Development(hereinafter referred to as the
"Secretary") and to any agency or department of
the Federal Government responsible for the regulation
of the holder that circumstances (such as the volume
of delinquent loans in its portfolio) make it
probable that there will be a foreclosure and
that the mortgagor is in need of emergency
mortgage relief as authorized by this chapter, except
that such statement by the holder of the mortgage
may be waived by the Secretary if, in is judgment
such waiver would further the purpose
of this chapter;

(3) payments under the mortgage
have been delinquent for at least
three months;

(4) the mortgagor has incurred a substantial
reduction in income as a result of involuntary
 unemployment or underemployment due to adverse
economic conditions and is financially unable to
make full mortgage payments;

(5) there is a reasonable prospect that
the mortgagor will be able to make the adjustments
necessary for a full resumption of
mortgage payments; and

(6) the mortgaged property is the
principal residence of the mortgagor.


-SOURCE-
(Pub.L. 94-50,title I, Sec. 103,July 2,1975,89 Stat.249.)


SO, IN SUMMARY: Under this emergency mortgage relief you must:

• Be a homeowner (primary residence/live in the home-not an investment)
• The note holder intends to foreclose
• Must be delinquent minimum of 3 months (behind in payments 90 days or more)
• involuntary unemployment or "underemployment (as hardship)
• reasonable assumption that, with this relief, future payment can and will be made
  

BUT THIS IS NOT
THE FULL STORY OF MORTGAGE RELIEF!

There are many
consumer loans which
have violations during the .
creation of existing mortgages...

Violations of predatory lending,
non-disclosure of fees and rates, etc.
Mortgage Relief
can come in many different ways...

These Loans
CAN ALSO QUALIFY
FOR RELIEF IN OTHER WAYS...

• You MUST be a Homeowner to qualify for Mortgage Relief...FALSE
• ONLY a Resident Homeowner can have loan modified now...FALSE
• Unemployment is the ONLY excuse for being behind...FALSE
• You MUST be in Foreclosure before you qualify for relief...FALSE
• You MUST be Behind in your Payments to qualify for help...FALSE
  

You CAN GET HELP...Even if you are NOT in FORECLOSURE,
Even if you are NOT Behind in your Payments
Even if you are NOT a Homeowner...Investors qualify too
GET A FREE ANALYSIS OF YOUR MORTGAGE LOAN TODAY at:

MORTGAGES ELIGIBLE FOR ASSISTANCE--free review
CREDIT REPAIR                               free Tutorial Video

Obama Mortgage Program is a Scam

Obama's mortgage plan up against fast-rising defaults

Refinancing and loan workouts are at the core of the fix. Some wonder whether it will be bold or swift enough to stabilize the market.

By Maura Reynolds
10:36 PM PST, February 18, 2009 LOS ANGELES TIMES (EXCERPTS)

The plan has two main elements aimed at the twin problems feeding the foreclosure crisis that is claiming more than 6,000 homes a day: "underwater" mortgages on which the balance owed is more than the current value of the property, and unaffordable loan payments that are forcing homeowners into default.

"All of us are paying a price for this home mortgage crisis," he said. "And all of us will pay an even steeper price if we allow this crisis to deepen."

One part would allow borrowers whose homes have lost value to refinance their mortgages at today's relatively low interest rates, even if the homeowner has little or no home equity left. To be eligible, borrowers must live in their homes and have a loan that is owned or guaranteed by Fannie Mae or Freddie Mac.

The opportunity to refinance will help "homeowners who have played by the rules [and] have been making their payments on time" but have been unable to refinance because collapsing housing prices have eroded the equity in their homes, said Housing Secretary Shaun Donovan.
*************************************************************************************
So, obviously, you have to read this carefully...

Part one says "borrowers whose homes have lost value..." ok, that's 100% of America!
I guess we all qualify so far!

"...even if the homeowner has little or no home equity left."
Well, anybody that bought their home in the last 3 years will have no problem covering
that qualification...

So..let's look deeper and see WHO REALLY QUALIFIES for this program...
(HINT: IT'S A LOT TOUGHER THAN THOSE "BAILOUT" BILLIONS...)

#1: The new programs are FOR PEOPLE NOT YET BEHIND IN THEIR PAYMENTS.
(therefore, this does NOT address the CURRENT Foreclosure problem, only the potential
EXPANSION of the current Foreclosure program...)

The plan is designed to help two kinds of homeowners. The first are people who took out prudent mortgages with a substantial down payment and have been making their payments, but who have little or no home equity because of falling housing prices. In the second group are borrowers who are struggling to make their monthly payments but would be able to make them if those payments were reduced.

So, to Recap:

• You can't be behind in your payments
• You have to be a Homeowner (Investors are on their own)
• Little to no Equity to qualify
  
• It offers to reset Interest Rates but not the Value of the property
• "Prudent Mortgages" with "Substantial Down Payments" to quality (Nobody qualifies!)
• Alternative Qualifiers are "borrowers who are struggling" but...

What if I'm already in foreclosure?

It is up to your lender to decide whether it wants to participate in the program or not. The Obama plan will increase the financial incentives to the lenders to participate, if they choose to.
But again...it is up to your lender. A program by the People, for the People...NO!

Unlike foreclosure-prevention efforts, both of the new programs are available to people who aren't yet behind on their payments. In the loan modification program, the government will pay mortgage servicers an incentive fee -- $1,500 instead of $1,000 -- if they will modify a loan before a borrower can go into default.

Let me tell you now...THIS PROGRAM DOES NOT GO FAR ENOUGH TO DO ANYTHING FOR THE TROUBLES OF CURRENT REAL ESTATE MARKETS, INVESTORS OF RENTALS
OR AMERICA'S HOMEOWNERS...It is simply geared to PROTECT THE BANKS to turn as many potentially disasterous non-performing mortgages they cherry-pick into new business as conservatively safe performing mortgage portfolios and discard the rest.
...PERIOD.

This program will throw away truly troubled homeowners like a kid would toss the Baseball Card of a light hitting Shortstop with a .200 lifetime batting average aside and keep the Superstars.

One major problem is the Credit Card companies are now wrecking the credit of many solid
American's by cutting all their "unused" credit lines, without cause...thereby, in effect, "maxing" out their accounts and driving their credit scores down (any true Recovery Plan for America
MUST address the abuses of the Credit Card industry, it's rates and it's effect on credit).

Second major problem with the Plan...MOST OF IT IS ILLEGAL...
And, this is why we say the Obama Mortgage Program is a Scam.

IF YOU THINK YOU MAY BE A VICTIM...YOU WILL WANT TO SEE FOR YOURSELF
AND GET THIS INFO...