The maximum size of loans that Fannie Mae, Freddie Mac and the Federal Housing Administration can guarantee is set to fall October 1 unless Congress acts, the Wall Street Journal reported on September 15, 2011. While the new limits vary by location, Washington DC is among markets that will drop from the current $729,750 to $625,500.
According to the Journal, many Democrats want to block the change but many Republicans “see allowing the limits to drop as a way to reduce the U.S. mortgage market’s dependence on government support.” Many banks have already started in pricing in the lower limits, as the Journal noted that applications for mortgages between $625,500 and $729,750 fell 34 percent in August, according to Mortgage Bankers Association data. Overall, mortgage applications fell 14 percent.
As the options for homeowners struggling through hard times get fewer and far between, it is important to remember that you can get deserved relief today through a Chapter 13 or Chapter 7 bankruptcy process. Washington DC and Maryland bankruptcy attorney Kevin D. Judd can answer all of your questions, whether they are about an automatic stay or a bankruptcy means test. If you need to eliminate bills and stop foreclosure, contact our office today to begin getting all the bankruptcy information you need to regain control of your life.
Law Firm of Kevin D. Judd – Washington DC bankruptcy lawyer