Posted on: 04th Sep, 2010 03:35 am
The Obama administration will be launching it's most ambitious plan to reduce mortgage balance for underwater homeowners on Tuesday, 7.09.2010. It is expected that if the new plan is successful, then it will help to modify around 500,000 and 1.5 million underwater loans. It is said that this is the first initiative to help homeowners who are current on their mortgage payments but are at risk of default as there's no equity in their homes.
the new program will be a kind of "short refinance". the banks and other creditors will write down mortgages to less than the value of the property and can hand off the reduced loan to the government. the borrowers will be able to refinance their existing mortgages into loans backed by the federal housing administration.
It is good to start helping underwater home owners
More and more people will stop foreclosing their property now and will stop hopping from one house to another..........
It could also check the process of defaults, making lot easier for the borrowers to pay their mortgage payments for 'actual value' of their homes.
DIPA
It could also check the process of defaults, making lot easier for the borrowers to pay their mortgage payments for 'actual value' of their homes.
DIPA