Contrary to what one might think after following the news of the economic turmoil, most homeowners pay their mortgages on time. And yet they are unable to take advantage of the lowest interest rates in years by refinancing their mortgage due to the plunging value of their real estate.
Many are having troubles meeting their monthly obligations because of lower income or higher mortgage rates.
On Thursday the treasury and the department of housing and urban development opened a new website ( http://www.makinghomeaffordable.gov) aimed at providing information to homeowners about the government´s mortgage modification and refinancing programs.
The offered assistance consists of two components.
The first component is a refinancing program for current mortgages that are guaranteed by Fannie Mae and Freddie Mac (recently chartered by congress), under the condition that the dept does not exceed 105% of the estate value.
The second component is a mortgage modification program for those who can no longer meet their payments. This program shares the cost of reduced payments between the government, mortgage servicers and lenders.
The program is seen as a breath of fresh air by the 7 to 9 million homeowners who may benefit from it and might be the first step in stabilizing our real estate market.
It seams like the entire nation is waiting in anticipation for what comes next from the Obama think tank and if it will be enough to kickstart the economy or if the state will collapse from the dept it has stacked up by the recent nationalizations in the finance sector.
