How the Real Estate Rescue Plan Can Help Owners of Dublin Ranch Homes.
We heard so much about the Real Estate Rescue Plan for so long; was it worth the wait? Before the President’s speech in Phoenix this week, the expectation of many in the real estate community could have been likened to the Second Coming of Christ. So now it’s here, and you have a home in Dublin Ranch – will you qualify for help with your mortgage?
The truth is, probably not. There are a couple of reasons for that. We’ll talk about them shortly here, and if you want more info we’ll refer you to this article.
First, anyone with a “jumbo” mortgage will not qualify. A jumbo mortgage is also considered to be a “non-conforming loan” which, until last year, was any loan above $417,000. I can’t think of one client we’ve helped in the last little while who owns a Dublin Ranch home, condo or townhome, who is in trouble, and who has a first mortgage less than $417,000.
The second reason the package is not likely to help Dublin Ranch is because anyone whose value has dropped more than 5% below their loan balance is out of luck. In Dublin Ranch, our values have come down almost 50% since the height of the market in 2005. Many buyers, at that time, were able to finance close to 100%. For the most part, owners of Dublin Ranch homes will be better served to try a workout with their lender than to wait for this package to go through.