We're finally seeing the possibility of homeowners in trouble getting a break.
The U.S. Treasury and the Federal Deposit Insurance Corp. are considering a program that may offer about $500 billion in guarantees for troubled mortgages to stem record foreclosures, people familiar with the matter said
The terms, not official would be:
The plan, which might put as many as 3 million homeowners into affordable loans, would require lenders to restructure mortgages based on a borrower's ability to repay
The Federal Government would guarantee loans readjusted for homeowners who can show annual income worth 38% of the debt on their house. Under the plan, lenders would be encouraged to lengthen loan terms and make other adjustments in order to lower monthly payments to help borrowers keep their homes
Yet the Treasury is claiming these reports are not true and there are no terms. Seems there is some sort of turf war and politics going on between the Treasury and the FDIC.
Another issue is to stem the tide of foreclosures to a large enough level to have an impact. Supposedly 10% of all homeowners are under duress at this point. And then this will nullify existing contracts. Poor babies, those predatory loans terms might be nullified after all?
Hey folks, how about creating good jobs, health insurance? Think that would have an impact?