Government Mortgage Aid Plan Announced
Posted on | November 11, 2008 | 2 Comments
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On November 11th, 2008, the United States government announced a plan to assist struggling homeowners with a mortgage aid plan. The major problem with the plan is that it focuses on loans that ONLY Fannie Mae and Freddie Mac own or guarantee which represents only 20 percent of delinquent loans in America.
The new aid program will officially begin on December 15 and will hopefully be a model for future efforts. There is no estimate on how many homeowners will be able to qualify. Fannie and Freddie does own or guarantee over 60 percent of outstanding United States mortgages.
To qualify for the assistance, borrowers must be at least three months behind on their mortgage payments and must owe 90 percent or more of what their home is worth. If this is the case, their interest rates would be reduced so they would not have to pay over 38 percent of their monthly income and there would be an option to pay the loan off in 40 years rather than 30.
How do you feel about this effort? Is this a good start or is the government way out in left field with this plan?
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2 Responses to “Government Mortgage Aid Plan Announced”
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November 11th, 2008 @ 5:41 pm
This week the government announced plans to extend maternity leave from six to nine months. Mortgage Loan
November 12th, 2008 @ 2:13 pm
If that don’t beat all, what about us folks who have a mortgage at the local bank with a baloon payment, they have us over a barrel and no help for us from the goverenment. FIGURES we are in need of the government to save us from doom and they are looking the other way, You should help us to we are hard working folks with a shrinking pay check as well.