Hope For Homeowners

“The Obama Administration today announced details of new efforts to help bring relief to responsible homeowners under the Making Home Affordable Program, including an effort to achieve greater affordability for homeowners by lowering payments on their second mortgages as well as a set of measures to help underwater borrowers stay in their homes.”

http://www.hud.gov/news/2009-04-28.cfm

 

And they better do this b/c below is a scary statistic and one that could be even higher depending on who is calculating the value.  “The downturn in home prices has left nearly 30% of U.S. homeowners owing more on a mortgage than their homes are worth, according to one new study, signaling additional challenges to the Obama administration’s efforts to stabilize the housing market.”

 

However with the Hope for Homeowners (if they actually help as many as they said they were going to this time) and according to the rest of this article they may increase the loan to values on the current Obama Plan.  I don’t know how many lenders will allow this after they re-evaluate the risks involved just as Jaime Dimon, Chase’s CEO, decided with the current program and won’t allow up to 105% loan to value.  “For instance, fewer will qualify to take advantage of a key component of the Obama administration’s plan to stabilize the housing market. Under the plan, announced in February, as many as five million homeowners whose loans are owned or guaranteed by government-controlled mortgage giants Fannie Mae and Freddie Mac can refinance their mortgages, but only if the mortgage loan is a maximum of 105% of the home’s value. Government officials are considering an increase in that limit. “It’s a question that we’re looking at,” said James Lockhart, director of the Federal Housing Finance Agency, which regulates Fannie and Freddie.”  http://online.wsj.com/article/SB124156804522089735.html