On April 6, 2009, the Federal Government, along with State Partners, issued a press release on cracking down on Foreclosure Rescue Scams and Loan Modification Fraud.  Many companies are posing as legitimate organizations, sending out official government like mailers and online ads.  These companies often ask for a minimum payment up front to initiate a loan modification.  Help is FREE at the government’s sites, you don’t have to PAY.

The U.S Department of Treasury established their Making Home Affordable website as a resource tool to help homeowners refinance or modify their mortgage.  This site contains a wealth of information and tools that homeowners can utilize to see if they qualify for a loan modification or a loan refinance, among other valuable resources.  The program targets 9 million homeowners who have a loan held by Fannie Mae or Freddie Mac.

The Federal Government issued the following advice regarding loan modifications:

• Only work with HUD-approved nonprofit counselors,
• Do not agree to pay a fee before you are provided with the promised service,
• Beware of people offering “guaranteed” results, and
• Do not sign blank forms or documents that you have not read.

The U.S. Department of Treasury offers a hotline number, 888.995.HOPE (4673), for FREE foreclosure counseling assistance.  Also, check out www.FinancialStability.gov for the latest news on President Obama’s Plan, economic data and updates from U.S. Treasury Secretary Timothy Geithner.  Another helpful site is:  www.hud.gov where you can find extensive guide to avoiding foreclosure.

In Summary, the following links are useful when trying to wind through the myriad of questions and concerns associated with loan modifications, short sales, foreclosures, loan refinancing, and other issues surrounding Obama’s Making Home Affordable Plan and your own housing situation. Here they are in brief:

OPTIONS TO HAVING SHORT SALES: www.financialstability.gov

Are you Eligible? http://www.makinghomeaffordable.gov/

Are you Eligible for a Home Affordable Refinance? http://www.makinghomeaffordable.gov/refinance_eligibility.html

Are you Eligible for a Loan Modifications?

http://www.makinghomeaffordable.gov/modification_eligibility.html

Contact your Mortgage Company: How to find your Mortgage Company’s Information at the Housing and Urban Development’s (HUDs) Hope Now website.

Guide to Avoiding Foreclosure: HUD.gov

According to Attorney General Madigan, authorities are sending a clear message to the scammers and it is not a question of if the government will come after them, but when they will.  Do not be swindled by the unscrupulous mortgage rescue scammers, remember help is FREE.  Protect yourself and save money by checking out the government links above.

It’s a no brainer that the recession is heaving chaos into the housing market, so it should come to no surprise that the First Quarter 2009 Economic and Real Estate Trends Report and its widely cited U.S. Market Risk Index(SM) released today, by the PMI Mortgage Insurance Company has gloomy projections. The PMI Report projects that 98% of the 381 Metropolitan Statistical Areas (MSAs) are facing an increased risk of lower home prices by the end of 2010.

PMI’s U.S. Market Risk Index projects the market risk of home price declines over a two year period in the 50 largest MSAs. The index uses economic, housing, and mortgage market factors to assess the probability of home prices in the 50 largest MSAs. Home price appreciation, employment, affordability, excess housing supply, interest rates and foreclosure activity are variables used in factoring the market risk.

According to the U.S. Market Risk Index, the Phoenix-Mesa-Scottsdale MSA ranked 10^th, and it stands a 98.8% likelihood that the area will face lower home prices by the end of 2010. The list displayed below presents the Top Ten Riskiest of the 50 Largest MSAs. Based on PMI’s Risk Index, these MSA’s have a high degree of risk, from 98.8% in Phoenix MSA to 99.9% in Miami MSA, that the home prices will decline.

Although these factors seem to dispel gloom and doom in these high Risk MSA Areas, these factors have lead to greater home affordability. While it may be a buyer’s market, some areas, like Phoenix, experience competitive bidding for many bargain priced homes.

Source:  PMI Mortgage Insurance Company. First Quarter 2009 Economic and Real Estate Trends Report 01 April 2009.

By: Ann Belfield

After President Obama chose Mesa, Arizona, to release his Making Home Affordability Plan in February 2009, three months later, he once again, brings Arizona into the national limelight. On May 13^th, over 8,000 lucky graduates from Arizona State University, along with their parents and guests, will hear President Obama speak at their commencement ceremony.

What makes Arizona so fortunate to be in the national limelight again? Could it be the location, the economic upheaval Arizona has experienced, the majestic beauty of the State that draws the President here, or a mix of all three? The President’s speech will be intriguing to hear, in the midst of a staggering unemployment rate and a dim job market for most graduates. It stands to be inspiring as well. He will lead graduates over the next four years of his Presidency and the way he gauges and strategizes the economic climate of the United State has the potential to make or break their future. Will he bring graduation presents for those who cannot find a job – in the form of another economic stimulus? A few Billion $$$?   Maybe the President will make Arizona his second home, up the street from Senator McCain.