Government Motgage Relief Program
Tuesday, November 11, 2008
The Government Mortgage Relief Program, announced by the Federal Housing Finance Agency, is about to launch and well, this is what many homeowners have been holding out for. Those paying exorbitant payments with high interest, sub-prime loan motgagors and those just in need of help, have been waiting, anyway.
The program has some limitations and the requirements may not be that easy to meet for some homeowners. This is according to government officials and Hope Now, a program the Bush administration started earlier this year. See this link for Hope Now Program facts.
http://www.whitehouse.gov/news/releases/2007/12/20071206-7.html
Homeowners will have to be a minimum of 3 months behind on payments, owe 90% or more of what their home is worth and qualify. Two caveats are the home MUST be a primary residence ( sorry investors) and the homeowner cannot be in bankruptcy.
Borrowers would get help in several ways: The interest rate would be reduced so that borrowers would not pay more than 38 percent of their income on housing expenses. Another option is for loans to be extended from 30 years to 40 years, and for some of the principal amount to be deferred interest-free.
While lenders have beefed up their efforts to aid borrowers over the past year, their earlier efforts have not kept up with the worst housing recession in decades.
Citi announced they are prepared to do this without the government involvement. I applaud Citi for the ethical and humane position they have taken. More mortgage holders should follow the exemplary example of Citi Mortgage.
Do you think this will help the overall economy? What about the Automobile Manufacturers? Should we be expected to help them too?
Michael Roberts
MichaelRobertsHomes.com
