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New FDIC Foreclosure Program |
10-29-08
With so many good foreclosure plans being brushed aside by mortgage banks and investors not willing to let many Americans into these new government programs such as HOPE for Homeowners the FDIC has come up with a new foreclosure bailout program, but would this just be added to list of failed programs or will this version actually help American homeowners in need?
This new plan spearheaded by Sheila Bair of the FDIC said she is working very closely with the Treasury department on a new plan that would cost about $40 billion and would include government insurance for any loans that are refinanced. The hope is that the banks would see this as a reduced risk and allow more homeowners to refinance into more stable and manageable loans.
The idea that the Treasury would guarantee part of the loan should make the idea of refinancing at risk homeowners more attractive and better received by many banks and investors. But while they are still working on the details of the program and the guidelines it has already been made clear that this program will be voluntary by your bank and they are in no way required to let anyone into the program. This has been the same rhetoric that we have been seeing in all the foreclosure help plans and we truly feel that unless the program guidelines state that a borrower under a set of met conditions is required to receive financing this crisis will continue to perpetuate and we will all pay the price for their lack of commitment. We however do truly hope that this new program once released will actually require lender participation under set conditions
Discuss the news here
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