President Obama has proposed expanding a program that’s designed to help homeowners who owe more on their mortgages than their homes are worth. With record low interest rates, the thinking is that some of these people should be able to refinance and at least get some financial relief. However, there are a number of conditions that homeowners must meet. The loan must be backed by Fannie Mae or Freddie Mac; it must have been made prior to May of 2009; and the homeowner must be current on their payments. Some analysts wonder if the scope of the proposal is wide enough to make a significant dent in the housing crisis.
Do you owe more on your mortgage than your house is worth? Are you likely to apply for this program? Why or why not?
- Guy Cecala: CEO and publisher of Inside Mortgage Finance