New Underwater Mortgage Refi Plan Proposed
Previous refi programs offered by the federal government have fallen short of solving the problem of roughly 25% of all U.S. homeowners owing more than their homes are worth.
The American economic recovery is currently being held back by $700 BILLION (yes, that’s a “B”!) of negative equity in the housing market.
Now, Senator Jeff Merkley, of Oregon, has announced a new plan that would allow underwater homeowners to refi at lower interest rates through a new program called Rebuilding American Homeownership Trust.
Check out Senator Merkley’s YouTube video that explains his proposal.
The innovative new program would sell bonds to raise funding that would be used to purchase new mortgages issued to underwater homeowners.
Best of all, the program would not require any taxpayer dollars!
I think this could work!
What do you think?
Source: DSNews.com article
July 26th, 2012 Posted in Inside Real Estate
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