Obama Expanding Efforts to Stem Foreclosures
FHA LOANS, HOME LOANS, INDUSTRY NEWS
May 1st, 2009
The Obama administration announced this week additional measures to help homeowners keep their homes off the 
auction block. They include incentives to lenders and borrowers to cut payments on second mortgages, write down principal balances on homes that are upside down and repay loans in a timely fashion.
Details are as follows:
- Decrease 2nd mortgage interest to as low as 1% for five years for some borrowers
- Revive FHA effort to convince lenders to reduce loan balances so homeowners have equity in their homes
- $50 billion of funding will come from previously authorized bailout monies
- Cash incentives to loan officers and borrowers that complete second loan modifications-$500 up front to loan officers and $250/year for three years as long as the loan remains current. Borrowers would receive $250/year for making timely payments for up to 5 years.
Borrowers struggling to make their mortgage payments should contact their mortgage holder to determine if they will participate in this program.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
