President Bush today announced the feds will help some homeowners who have adjustable and or high or otherwise unaffordable payments. Its called FHASecure. He said 'there have been some exceeses in the lending industry' uh, duh, you think?
The program is to help folks who are 90 days late, yet still in there house. It will help them refinance at better rates so they avoid foreclosure. We know if several foreclosures continue to happen, then the home improvement industry like Lowe's Home Depo ect will lay off folks etc, etc, and the hits would just keep coming.
Bush also will ask Congress to suspend, for a limited period, an Internal Revenue Service provision that penalizes borrowers who refinance the terms of their mortgage to reduce the size of the loan or who lose their homes to foreclosure.
His thought is also to identify people who are in danger of defaulting over the next two years and work with lenders, insurers and others to develop more favorable loan products for those borrowers. Many homeowners believed they could refinance their loans, but that has become much harder as lenders tighten their standards in the face of defaults and foreclosures. Sound familier???
In another move, Mr. Paulson and HUD Secretary Alphonso Jackson have instructed their staffs to begin working with mortgage lenders and others to identify borrowers who are in danger of defaulting. They also are trying to work with private lenders and mortgage giants Fannie Mae and Freddie Mac to develop loans for borrowers who will likely face default if they can't get more flexible terms.
So, all that said, help could be on the horizen, Bush said he is not looking for a bail out of our problem, but a way to assist people who are facing these crisis. I willl keep the blog updated as this unfolds.
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