FHA debuted a(nother) plan yesterday to help out homeowners who are underwater on their homes. The plan will allow lenders to refinance loans, and forgive up to 10% of the amount borrowed. Borrowers must be current on their mortgages, and owe at least 15% more than the current market value of the home. This is not a required program, and lenders do not have to apply it to any loans. The government estimates that between 500,000 and 1.5 million home owners will be helped, but Barclays' analysts doubt that even 300,000 will actually be helped. We can add this to the long list of programs that the government has proposed, we'll have to wait and see if it gets implemented, or has any affect on the economy or housing market.
Source: Alan Zibel AP 9-7-10
Do you think that if a program like this is tried, it SHOULD be required?
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