Today we'll learn details of President Obama's $75 billion homeowner stabilization initiative. So far we know from reports that the plan would reduce mortgage payments to 38% of borrowers' income and, with government assistance, further reduce mortgage payments to 31% of borrowers' income through government write-downs of principle. Homeowners "at risk" but not currently in default on their mortgages would also be eligible for assistance. Low rates will be guaranteed for a period of five years. Reports by MSNBC are that borrowers would receive incentives for keeping their mortgages current and that lenders would receive payments for helping homeowners restructure their mortgages, as well as receive incentives for keeping borrowers' mortgages current. More details to follow as they come in.
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Jolenta Averill, Principal
Lake & City Homes Realty