2012 MORTGAGE DEBT RELIEF PROGRAM MAY BE ON THE WAY; WOULD YOU QUALIFY?

The Wall Street Journal posted a very compelling article on a new program currently in review.  It would essentially allow many homeowners to be forgiven for some of their mortgage debt.  If you currently owe more than your home is worth, Fannie and Freddie are in talks to come up with a plan to offer assistance.  The Obama administration has pushed for similar programs and would likely back this decision.

In the post by the WSJ, acting director of the Federal Housing Finance Agency, Edward J. DeMarco, is quoted as saying, “In some circumstances it might make economic sense for the government-run companies to reduce borrowers’ mortgages, taking a hit to modify the loan but also making it less likely that a homeowner will default”.

It’s not yet clear who would qualify for this extremely needed help, or if it would make things better or worse.  Some argue it may cause some homeowners to stop paying their mortgages altogether, others believe it may stabilize the overall economy.

If you are deeply underwater on your home, it is something to follow closely.  Read the article and keep an eye out for the outcome, this plan may possibly be your saviour.

IF YOU ARE CURRENTLY CONSIDERING A SHORT SALE…ANOTHER GOOD ARTICLE TO READ.

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