I am getting a lot of email on the new “Obama Refinance Plan” that was announced last week. I’ll be back with a more technical breakdown of the key elements of the proposal, but I wanted to poke my head out to make two quick points on this:
1. The Obama Refinance Plan is a proposal. It is not a new program. It is an IDEA, not a THING.
2. The Obama Refinance Plan requires Congressional Approval. Given that it is an election year (not to mention the well documented dysfunction in congress) there is a chance the plan is never passed, and any legislation passed may be unrecognizable from it’s currently advertised form.
3. Get ready to wait. Even if congress acts quickly, it will likely take six months or more before loans may be refinanced under any new plan (remember HARP II? Announced in November, did not need Congress, still is not fully implemented and won’t be until mid-March at the earliest.)
Okay, that was three.
So what’s an underwater homeowner who would like to see this proposal become a real program to do?
Call or write your congressperson and tell them that they might just drag their approval ratings out of the sub-basement by deploying some government muscle in a way that directly benefits their home-owning constituents.
I am serious about this – there are powerful interests aligned against this proposal who will most certainly be heard if you choose not to speak up for your own.