Cash for Clunkers Program: Get up to $4,500 in Car Rebate

1 08 2009

The CAR Allowance Rebate System (CARS) is a $1 billion government program that helps consumers buy or lease a more environmentally-friendly vehicle from a participating dealer when they trade in a less fuel-efficient car or truck. The program is designed to energize the economy, boost auto sales and put safer, cleaner and more fuel-efficient vehicles on the nation’s roadways.

Consumers will be able to take advantage of this program and receive a $3,500 or $4,500 discount from the car dealer when they trade in their old vehicle and purchase or lease a new one. Consumers you do not need to register anywhere or at anytime for this program. To find out eligibility requirements, visit

What to bring to the dealer to qualify?

* One-year Proof of Insurance. If your insurance card does not cover the entire year preceding the trade in, you will need other proof of insurance. Contact your insurance company to get evidence of one-year worth of insurance. The form must include, at a minimum, the insurance company, policy number, VIN, start and end date of insurance (showing at least 1 year).

* Proof of Registration going back at least one-year.

* Clear title. This means the title must be free of any liens or other encumbrances. If you have liens, you need to get these cleared before going to the dealer. This may include evidence on the face of the title showing no lien; that the title has been cleared (signed and stamped accordingly), or with an attached lien release from the lien holder.

* The vehicle manufacturer date found on the driver’s door or door jamb is less than 25 years old when you trade it in.

If you do not have any of the above items in your possession, you may do the following:

* Call your insurance company and have them provide evidence of 1 years worth of insurance on the trade-in vehicle. Make sure it includes the minimum requirements noted above.

* Contact your DMV for copies of prior registration certificates to show proof of ownership of the trade-in vehicle for at least the past year. The name on the registration must be the same as the name on the title and the same as the purchaser of the new vehicle.

* Clear your title by paying-off any loans outstanding and receive either a newly issued title from the DMV that is free of all liens and other encumbrances, or have the lien release document from the lien holder (signed and stamped accordingly), or your title signed and stamped accordingly (showing it is clear)

Once you are at the dealer you will be asked to certify to the following under penalty of law. The above documents will provide proof to the dealer to assist in this certification process.

* The trade-in is in drivable condition.
* You are the registered owner, and have been for at least the last year.
* The trade-in has been continuously insured for the last year.
* The trade-in is titled in your name and has been for the last year.
* You have not previously participated in the CARS program.

For more info on the Consumer Assistance to Recycle and Save Act of 2009, call the CARS Hotline at (866) CAR-7891.

Source: U.S. Department of Transportation

New FHA Foreclosure Loan Assistance

1 08 2009

Loans backed by the Federal Housing Administration (FHA) will be eligible for payment reductions similar to the Obama administration’s loan modification program.

Effective Aug. 15, financially troubled homeowners who have an FHA-insured loan can apply for a modification under a program parallel to “Making Home Affordable” to help lower their payments and avoid foreclosure.

The program, launched in March, is designed to lower monthly payments for 3 million to 4 million borrowers, although only about 200,000 have been helped so far. Lenders agreed this week to adjust 500,000 loans by Nov. 1.

The FHA, which backs about 5 million loans, is a government-run mortgage insurance program. It became the main source of home loans to borrowers with poor credit and low down payments after the collapse of the subprime lending market.

The agency lets borrowers take out home loans with down payments as low as 3.5 percent, compared with 20 percent for a typical loan that doesn’t require mortgage insurance.

By law, FHA cannot offer borrowers interest rates as low as 2 percent, which are available under the Obama plan. Instead, FHA will allow lenders to set aside up to 30 percent of the total principal balance until the house is sold or the property is refinanced. No interest will be charged on that amount.

Lenders who participate in the FHA program will receive an incentive fee of up to $1,250 and can be reimbursed for $250 in costs.

Source: Florida Association of Realtors

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