Loan modifications could put floor under house prices

From Rob H -- The Obama Administration on March 4 announced new U.S. Department of the Treasury guidelines to enable loan servicers to begin modifications of eligible mortgages under the Administration's Homeowner Affordability and Stability Plan – announced by President Barack Obama just two weeks ago. This "Making Home Affordable" program authorizes implementation of provisions that will help bring relief to responsible homeowners struggling to make their mortgage payments, while preventing neighborhoods and communities from suffering the negative spillover effects of foreclosure such as lower housing prices, increased crime and higher taxes. The program could help up to 9 million homeowners who are making good-faith efforts to make their mortgage payments. It will not provide money to speculators, and it will target support to the working homeowners who have made every possible effort to stay current on their mortgage payments. You can find a press release and details of the program by clicking here. Placing a floor under falling house prices is important and could mark the beginning of the end of the economic freefall this country is in. As stated on www.fixhousingfirst.com, "Home prices and property values dramatically declined (and continue to decline) across the country. Americans are now hesitant to buy homes because they fear prices will not stabilize anytime soon." Reade more at Financialstability.gov.

Loading