Tuesday, October 18, 2011

New Mortgage Plan Proposal

In the newest government efforts to ease the housing market problems, state and federal authorities are pushing a plan that could help some underwater homeowners get refinancing help. This proposal was brought about in a recent meeting between government negotiators and lenders as part of efforts to settle questionable foreclosure practices. The proposal is still in the process of being discussed. This plan would make refinancing available to some homeowners whose loans are worth more than their homes as long as they are up to date with their mortgage payments. These homeowners currently are not able to refinance because they do not have equity on their homes. However, this plan is only applicable to mortgages owned by banks, and that only accounts for 20 percent of mortgages because majority are owned by investors in mortgage backed securities. For further detail see the following Wall Street Journal article and video: New Mortgage Plan Floated

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