President Obama's new plan -
There is lot's of talk about the changes going on. The Obama administration’s first budget proposal included a provision to reduce the mortgage interest and local property tax deductions for those earning more than $250,000. Aargghhh! Maybe this makes sense in certain areas in our country but not in California where our costs of living and housing prices are much higher and inflated than other parts of the country. This law could negatively impact our housing market even further.
Many mortgage professionals are advising clients not to wait to refinance. Stricter loan underwriting standards and declining property values could result in some homeowners becoming ineligible for the Obama administration’s “Making Home Affordable Refinance” program. As a result, many mortgage professionals are advising clients not to wait to refinance.
Refinances also are taking longer to complete. Whereas a refinance used to take three to four weeks to process, it now is taking as long as six weeks.
My 2 Cents -
I'm seeing a lot of people in distress who aren't clearly understanding the new laws. It's very important to obtain the correct information for your situation and not just trust to the new legislations to majically solve problems. Go to the sources and get updated information. Use your trusted professional to help you find those sources.