Fannie & Freddie Principal Reductions Fannie Mae & Freddie Mac Principal Reductions on Folsom Loans

http://www.shortsaleandloanmod.info Folsom Short Sale Agent and Default Advocate Mike Rigley discusses Fannie Mae & Freddie Mac Principal Reductions on Folsom Loans Let's talk about why Fannie and Freddie don't want to allow principle reductions. Right now the Federal Housing Finance Agency, the agency who oversees both Fannie & Freddie are analyzing how much principal reduction under a revamped Home Affordable Modification Program could cost or save Fannie Mae and Freddie Mac. The results are expected in the next few weeks. FHFA Acting Director Edward DeMarco said in a recent interview with the Financial Times that several hurdles remain. Notably, reducing the first lien without addressing the second would unfairly push more dollars to the big banks that hold those positions. He feels that reducing the monthly payment instead would be just as good a deal at a fraction of the cost. From a first lien holder's point of view, and in the case of Fannie & Freddie, it might not make sense to write down the first lien if the second lien holder does not reduce at least a proportionate amount of principal. Think about it. If the taxpayers -- me and you, take the hit on principal reductions and the second lien holder be it B of A, Chase, Wells or whoever, don't participate, didn't we just improve their position and in essence give more taxpayer dollars to the banks? Now I'm not anti-bank but I am anti-tax dollar give-a-ways Now, it's still unknown how many GSE mortgages even have a second lien, and DeMarco is convinced re-default rates on forbearance plans and principal reduction plans are similar. But the biggest unknown is how much moral hazard a program could create. HAMP is for delinquent borrowers, and doing GSE principal reduction under the program could convince some to strategically default on their Folsom loan. Could be a real interesting turn of events should this come to pass. To get a better idea of when your Folsom home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation. Call me today and sleep better tonight; you'll be glad you did If you are a homeowner who has missed payments, possibly facing foreclosure or just owe more than your home is worth please contact Mike Rigley Short Sale Specialist at 888-317-9376 or [email protected] for a free no obligation confidential consultation and receive the latest information on your options to avoid foreclosure and the benefits of a short sale. Learn More about Mike and his expertise at    • Sacramento Short Sale Agent and Default Ad...   If you owe more than your home is worth, want to know how long in todays present market it will take until your home is worth what you owe? Check out our calculator at http://www.shortsaleandloanmod.info Consistently ranked as one of Northern California's top Short Sale Agents and Specialist, Mike Rigley is one of the areas premiere Certified Default Advocates. With his strong focus on assisting homeowners in need, Mike offers a straightforward no nonsense consultation designed to give you all the information and facts to enable you to make the best decision for you and your family. As every situation is different, Mike offers his insight and knowledge of the default process and all the options available to you to avoid foreclosure. Mikes experience of representing both homeowners in distress avoid foreclosure and his insider knowledge of the default process makes' Mikes experience unique. Trained and personally coached by the former Chief Loss Mitigator of IndyMac bank, Mike understands what the banks are looking for and how best to assist you in your time of need. Call Mike today toll free at 888-317-9376 for your free consultation and sleep better tonight