What the housing bailout means to you.

We had a phenomenally successful "Find Your Dream Home Weekend" this past Saturday and Sunday. Over 200 homes participated and for some, there were 20 to 30 people through during a two-hour span. Talk about a revolving door! This activity is both encouraging and critical. Buyers are energized!

Also important this past week was the Treasury Department's announcement (March 4th) of the program guidelines that are expected to become standard industry practice in pursuing affordable and sustainable mortgage modifications. The immediate concern for consumers is how they can get access to the funds.

Most provisions are straightforward, but some -- such as the benefits to homeowners -- require careful explanation. It is critical to have someone you trust guide you through, as changes are emerging daily.

Below is an outline of the plan. At any time, you can check my blog or pick up the phone and call for the latest updates. I'm always here to answer any questions you may have. The best way to reach me now is TEXT. Get a quick answer to your pressing questions. Try it now. Text "CN How is the Market" to 555999. Be sure to leave a space after the CN.

To view Northrop Team listings, click here. To view Northrop Team Open Houses, click here.

Within the new administration's stimulus plan is an array of programs to help millions of homeowners refinance or modify their mortgages. The program has "teeth," but requires everyone to make a contribution. Mortgage investors, servicers and borrowers all have to participate. First and foremost, the plan aims to help reduce the wave of unnecessary foreclosures which will in turn provide greater stability to home prices or at least mitigate the downward pressure of home prices, which will help us all.

If your debt to income ratio — that is —your principal, interest, taxes and insurance on your mortgage exceeds 31% of your gross income, you may be able to get help.

If you are borrower in distress, you may be eligible. First of all, you need to know program benefits apply to those in owner-occupied properties. You must live in the home and it must be your first mortgage.

You'll also need to be patient. Experts predict a big surge to Fannie & Freddie. But they are being encouraged to act swiftly.

1. Homebuyer Tax Credit – The plan provides for an $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

2. Refinancing - Many homeowners pay their mortgages on time but are not able to refinance to take advantage of today's lower mortgage rates perhaps due to a decrease in the value of their home. The Refinance program will help borrowers whose loans are held by Fannie Mae or Freddie Mac refinance into a more affordable mortgage. This will offer assistance to as many as 7 to 9 million homeowners.

3. Foreclosure Prevention/Loan Modification - Many homeowners are struggling to make their monthly mortgage payments either because their interest rate has increased or they have less income. The Modification program will provide them with mortgage payments they can afford. It is designed to help people in a distressed situation now or those that have a chance of falling behind in the foreseeable future due to job loss or a reset on their mortgage.

Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, this program will work in tandem with an expanded and improved Hope for Homeowners program. If you or someone you know is worried about losing their home, visit http://www.northropteam.com/hope now. This will assist as many as 3-4 million borrowers.

*It's estimated that borrowers will be able to finance up to 105% of the market value. (These loans may be subject to slightly higher interest rates than market.)

Servicers can begin to modify eligible mortgages immediately under the Modification program so that at-risk borrowers can better afford their payments.

Setting a uniform standard to modify these loans will help facilitate the process, and will help these programs go into effect more swiftly. Major Banks and lenders must be on board. Some major banks have already agreed to suspend foreclosure activity until plans go into effect.

Borrowers will need to confirm eligibility through income verification, second liens, credit card bills, recurring debt payments as well as your mortgage payments. So have those documents ready to make sure they can get you into an affordable rate.

Visit http://www.northropteam.com/eligibility for a FAQ and further information on who is eligible.

Again, we are happy to report many homeowners have successfully sold their homes with us over the last four months. We sold more homes in the month of December -- typically a slow month, than in any December over years past. We sold more homes in January and February than we have over years past. And we have a record number of settlements scheduled for the month of March.

Any plan that promotes buyers, especially first time home buyers who need the money the most to get started, will have a positive effect on the market; allowing them to invest in their future. The homes that THEY buy will then create new move-up buyers in the market that first needed to get their home sold. To ultimately stimulate and stabilize the economy, housing recovery legislation is the most important first step.

For more information on the government's new economic stimulus plan and how it could affect you, contact Michelle Mathews & The Mathews Lending Team of Prosperity Mortgage today!

"The entire Northrop Team was quite impressive and organized. Every employee was professional and a pleasure to work with. Thanks to all!!--- Jackie and Gary M.

Potential buyers: Screw you. You will be forced to serve fools who drove up the prices and priced you out of the market

In the meantime, if you’re a sucker who followed the rules and didn’t get help the first time from them, don’t look for help from them now. You’ve lost your kids’ college fund and now you’re going to lose retirement too.

I am starting to think that the only way to live now is off the electrical grid on a piece of totally undeveloped land, in trailer because most states/counties don’t tax “wheeled” dwellings. Any social/business interaction at all, real estate, electricity etc. is now not worth what you get for it.

3 posted on 03/10/2009 5:44:04 AM PDT by central_va (Co. C, 15th Va., Patrick Henry Rifles-The boys of Hanover Co.)

Locally, our electric and water bills look like Christmas trees of government fees and speciality projects, most of which have nothing to do with electricity or water. Proving, government will find a way to get the money, regardless.

4 posted on 03/10/2009 5:46:45 AM PDT by Tarpon (It's a common fact, one can't be liberal and rational at the same time.)

Drill your own well and septic. Get off the grid. Try to detangle yourself from any form of government control/taxes.

5 posted on 03/10/2009 6:13:48 AM PDT by central_va (Co. C, 15th Va., Patrick Henry Rifles-The boys of Hanover Co.)

the only way to live now is off the electrical grid on a piece of totally undeveloped land, in trailer because most states/counties don’t tax “wheeled” dwellings

I have came to the same conclusion.
In my area if you live in a (double wide or trailer) taxes are not even one half of owning a home, same with Ins.
If one of these units’ catch fire it's just a “poof” their gone, not as a conventional home in which in most case's can be saved.

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