US Foreclosure Prevention Program Launches
The plan is meant to help struggling homeowners refinance their mortgages to get the remaining mortgage amount below the overall value of their home, as well as provide incentives to lenders to give you a better deal.
However, if your property value has dropped to more than 5% below the value of your home, then this program will not help you.
The $75 billion effort, dubbed the Homeowner Affordability and Stability Plan, boils down to two basic solutions:
First, the government is aiming to help more homeowners refinance into new low interest rates.
Second, it provides incentives to lenders and servicers to restructure your mortgage to more affordable levels.
Until last year, had you ever heard the term "underwater" in regards to home value before?