It does not come without some resistance.  It is focused on loans either owned or guaranteed by Fannie Mae and Freddie Mac. It is for homeowners who are at least 3 months behind on their mortgage and owe 90% or more than the house is worth. They will either reduce total housing expense to 38% of your gross income or extend your mortgage from 30 to 40 years or defer some of the principal and make it interest only so distressed home owners can stay in their homes.

There are a lot of homeowners out there who are making their payments that are saying, "This is not fair". Consider this, real estate values are going down faster now than in the 1930’s and if these troubled homeowners do not get help they will lose their homes and now you face another foreclosure on your street bringing the values of your home down even further. Even though it is not fair it is a start and this program will only help about 20% of the homeowners who are in trouble because that is the amount of loans guaranteed by Fannie or Freddie.

 The big banks need to realize that it will be less expensive for them to help struggling homeowners stay in their home than let these homes be foreclosed on with the nice dead lawn and eye sore that could go on for months. Posted by David Hughes on
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