Zero Interest Mortgages for Home Buyers and Foreclosures
LANCASTER, Pa., Nov. 13, 2010 /PRNewswire/ -- As the economy continues to weaken, first time home buyers and people facing foreclosure have a hard time finding a mortgage. To assist people, a new public service is now available from Community Clearinghouse Agency Inc. of Lancaster, Pa.
Their solution is to provide a zero interest mortgage with payments going directly to reduce principal. Homebuyers locate their own a property, make an offer, negotiate for cash, the agency acquires the property passing it on to the buyer. The new service only applies to single family dwellings. With foreclosures, the plan takes effect only if the foreclosure is dismissed and the homeowner's debt to the bank is reduced.
Home buyers can purchase a home without a thirty year commitment reducing it to under twelve years with full ownership free and clear. CCA requires additional payments throughout the year without penalty. Dale Vega, director stated, "As people make additional payments, more funds become available for mortgages. The program will help stimulate the economy by buying and selling single family homes."
Mortgages are based on ability to pay, not necessarily one's credit score, buyers must provide a reasonable down payment with closing costs. Affordable payments are arranged to suit each buyer including taxes and insurance. The only cost is an administration fee of about $100 per month. After deducting costs, the entire balance is applied to the principal. The transparent program allows homeowners to know where every penny is spent because they keep their own records, the same applies to foreclosures.
Mr. Vega said, "It's like rent to own, only everything you pay above taxes and insurance goes directly to principal not interest." The program will be funded with federal funds, grants, and sponsorships available nationwide, starting in Pennsylvania.
CCA (www.donatecca.org) is a 501-C-3 volunteer based social service helping abused women and families in need since 1995 and now expanding to include mortgage services. Sponsors and donors may contact the agency to help assist families nationwide.
Additional information and a preliminary application can only be requested by sending a self addressed stamped envelope to CCA P.O. Box 8361 Lancaster, Pa. 17604-8361.
SOURCE Community Clearinghouse Agency Inc.
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