An insightful article from RealtyTimes.com today on alternative ideas currently being ran through Congress regarding the problems the housing market faces with foreclosures. As many are aware, homeowners across the country are in danger of being foreclosed on their mortgage by the thousands. While the FHA has always been considered a top program to help alleviate the burdens of the marketplace after the subprime fallout, the article goes into more detail about proposed solutions.
"In the Lyons McCloskey plan, seriously delinquent borrowers would be refinanced into fixed-rate mortgages insured or provided by FHA, the VA, Freddie Mac or Fannie Mae. The refi costs and any arrears on the previous mortgage would be treated as a "soft second" lien with no interest payments due. FHA would partially guarantee the second lien, and the bondholders or investors would assume the risks on the uninsured portion."A meeting is scheduled for tomorrow for the Housing subcommitte to discuss possible programs such as these, and the market is desperately seeking some results. At Mortgage Loan Place, we are primarily concerned with educating potential home buyers and current homeowners about all the possibilities in financing their home. It is in the best interest of all parties involved - from the buyers and sellers, to the realtors, brokers, and investors - to correct the problems that we have caused over the past 5-7 years.
Horror stories have been spreading across the net about all the turmoil the housing market and our economy will suffer as a fallout of the irresponsible purchasing and lending over the past few years. While Congress has yet to finalize any legislation to push along a combatant to these possible problems, it's encouraging to see stories like this from RealtyTimes and the NAR.