Chris Cantell Discusses Real-Estate: Hope for Homeowners Act
by Romana Otockova
Senator Chris Dodd, Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today announced his intention to introduce legislation that will create a new program within the Federal Housing Administration (FHA) to provide aid to distressed borrowers currently trapped in mortgages they cannot afford.
“This is the worst housing crisis of our lifetime, and we’re in a recession as a result of it,” said Dodd. “The question is, how deep is this going to go? How long-lasting will it be? We need to move aggressively – cautiously, prudently, and thoughtfully – but aggressively, in order to regain our financial footing and ensure a crisis of this magnitude does not occur again.
What exactly will legislation do? It will allow those who qualify to cancel their old mortgage loans and replace them with 30-year fixed-rate loans for up to 90 percent of the home's current value. The FHA will insure a total of $300 billion of the loans over a three-year period.But the decision on whether to write such a loan remains up to banks, which would have to be willing to take a loss on the existing loans in exchange for avoiding an often-costly foreclosure.
Eligible borrowers must have spent more than 31 percent of their monthly incomes on their mortgages as of March 1, 2008. The troubled loan must have originated no later than Jan. 1, 2008, and be on the borrower's primary residence. And the borrower's income must be verified.
The program starts in Oct. 1 and runs through September 2011, although the FHA isn't likely to have it operating at full capacity until next year.
related story: http://news.yahoo.com/s/ap/20080730/ap_on_bi_ge/mortgage_relief_q_a;_ylt=Apai_6kzyEowK37XIkoD5das0NUE
PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>
edited by Beata Biskova
“This is the worst housing crisis of our lifetime, and we’re in a recession as a result of it,” said Dodd. “The question is, how deep is this going to go? How long-lasting will it be? We need to move aggressively – cautiously, prudently, and thoughtfully – but aggressively, in order to regain our financial footing and ensure a crisis of this magnitude does not occur again.
What exactly will legislation do? It will allow those who qualify to cancel their old mortgage loans and replace them with 30-year fixed-rate loans for up to 90 percent of the home's current value. The FHA will insure a total of $300 billion of the loans over a three-year period.But the decision on whether to write such a loan remains up to banks, which would have to be willing to take a loss on the existing loans in exchange for avoiding an often-costly foreclosure.
Eligible borrowers must have spent more than 31 percent of their monthly incomes on their mortgages as of March 1, 2008. The troubled loan must have originated no later than Jan. 1, 2008, and be on the borrower's primary residence. And the borrower's income must be verified.
The program starts in Oct. 1 and runs through September 2011, although the FHA isn't likely to have it operating at full capacity until next year.
related story: http://news.yahoo.com/s/ap/20080730/ap_on_bi_ge/mortgage_relief_q_a;_ylt=Apai_6kzyEowK37XIkoD5das0NUE
| by Romana Otockova for PocketNews (http://pocketnews.tv) |
PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>
edited by Beata Biskova
Labels: CantellTV, Chris Cantell, Christopher Cantell, digital broadcasting, Real-Estate, SigEx Foundry, SigEx Telecom
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