Connecticut Select Homes | Fairfield County CT Real Estate

The severe contraction in the economy and specifically in the housing market has caused devastating consequences for homeowners everywhere. Millions of responsible, hardworking homeowners who have been paying their mortgages on time and fulfilling their obligations are now unable to refinance to lower mortgage rates as they have watched their property values fall. Millions of these homeowners have now had their hours cut or even worse, lost their jobs altogether and are struggling to stay current on their mortgages. Home prices will undoubtedly find equilibrium; as home prices fall, demand will increase. However, some say that there is danger of a spiral where lenders will increase foreclosures, pushing area home prices lower still.

The Obama Administration has introduced a comprehensive Financial Stability Plan. A crucial piece of that plan is called Making Home Affordable. The Making Home Affordable Plan will offer assistance to as many as 7 to 9 million homeowners who are making a good-faith effort to make their mortgage payments, while attempting to prevent the destructive impact of the housing crisis on families. It will target homeowners who have made every possible effort to stay current on their mortgage and will not provide money to speculators. The program aims to stabilize the housing market and help homeowners reduce their monthly mortgage payments to more affordable levels.

The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments. The Home Affordable Modification Program commits $75 billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures. The plans aim to bring together the government, the lenders and homeowners to share responsibility toward ensuring that Americans can afford to stay in theirhomes.

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