Transferring your underwater home title to Barack Obama or John McCain is not a bona fide deed

How many stories have we heard about homeowners who owe more on their homes than the market value try to work out a new payment plan or refiance  the amount owed to a lower rate over the last few years?   I myself, have heard hundreds.   The HARP cap is looking to be removed next month, annouced by President Obama on Monday.   Allowing all of the homeowners who want to keep their homes not be tempted to WALK AWAY  have an option to refiance at today’s record low interest rates no matter what their loan-t0- value ratio is – FINALLY!!!

We will ask “why was this program  not done when the housing market was hit with the first wave of foreclosed properties causing  a downward sprial for housing values” – right? All I can say is, better late than never. 

Let’s hope that  HARP (homeaffordable.gov) works this time.  The government is not releasing all the details of the program until December.  HUD and the Treasury officials will attempt to cut fees and work on ways to get lenders to participate quickly. 

 Here is what we know so far for :

*Homeowners must have a mortgage backed by government owned FANNIE MAE or FREDDIE MAC in 2009 or earlier. To determine if you qualify goto:  www.FannieMAE.com/loan/lookup  or https://www.FreddieMAC.com/corporate  or call your mortgage servicer.

*Homowners must be underwater and not have missed more than one mortage payment in the last year.

The HARP program so far has helped 900,000 homeowners nationally to refiance.  Arizona figures are not available.

The loan modification program – HAMP who had tens of thousands of homeowners in Arizona alone in promised loan modifications trial payment plans for more than a year be denied permanent modifications.  The federal housing plan called for helping 7 million to 9 million homeowners.  Fewer than 2.5 million have been helped with all of the plan’s programs.

The housing market is confusing and difficult to navigate for most of us these days. One month prices are up, the next they are down. The same with foreclosures. In one metro Phoenix neighborhood, there are more short sales than regular sales. In another area less than a mile away, homes are selling for the asking price.

Frustrated homeowners who have WALKED AWAY after making several attempts to save their homes- have sat by just to watch their vacant home not be taken back by the lender for months, even years.   Until the title transfers, the homeowner is responsible for the condition of the property of the home.  Although some homeowners have recorded deeds transferring their properties from themselves to Barack Obama or John McCain, obviously that doesn’t work  (it is not a bona fide deed) will continue to have  financial responsiblitiy for HOA dues, property taxes, homeowners insurance, until the lender steps in.