3-31-08

The Bush administration is finally considering solutions that would help homeowners that owe more on their mortgages then the properties are worth and who are having issues with payment do to adjustable or unfair mortgage terms. FHA is the current focus to revitalize the housing market and to ensure that affordable and fair loans are available to those who qualify for them.

In addition the Democrats are working on a plan that would allocate up to 400 Billion for the purchases of distressed mortgages at a discount from lenders. It is this discount that will in most part be passed down to the borrower resulting in a smaller mortgages with much smaller payment and a low fixed rated.

The HUD sent a very similar proposal to the White House for approval with the same basic concept as the democratic plan however with limited scope to target areas in our country most hit by mortgage problems and declining values. It is not clear yet how the White House will endorse this plan and what revisions they bring to the table.

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