Friday, March 26, 2010

Treasury Plan: Mortgage Principal Reductions for Underwater Homeowners, Help for the Unemployed

UPDATE:  Treasury Press Release. 
The press release also contains links to FAQ and various mortgage-debtor scenarios.

The Federal Housing Administration will take over underwater loans and reduce mortgage principal then reissue new loans, begining in September.   Read here. 

And according to the WaPo, the Obama Admin will order mortgage lenders/servicers to slash or suspend mortgage payments for those who are unemployed.

The mortgage mod program, Making Home Affordable (HAMP), was slated to help up to 4 million mortgageholders but has so far helped about 200,000.  A new Short Sale incentive program goes into effect April 5.

Related Reading:
Mortgage Rates Jump, Inventory Rises, Local and National Sales Are Down
9 Reasons Home Prices Will Continue Dropping in Charlottesville Albemarle

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