Obama Housing Plan Question and Answer

Obama’s Housing Plan to contain foreclosures was unveiled yesterday among a cheering crowd of people. He outlined four steps included in the plan. They are as follows;
1. Fannie Mae and Freddie Mac to refinance loans to low fixed rate for more than 80 % loan to value.
2. Establish clear guidelines for lenders in two weeks to modify loans to no more than 31% of borrower’s income
3. Keep mortgage rates low.
4. Set reforms to avoid foreclosures and allot two billion to communities who help in keeping foreclosure down.

It is good news that the new administration is outlining ways to stop foreclosures. The specific guidelines for lenders will come out in two weeks. Those borrowers who are good candidates for loan modification should receive a letter from their lender regarding this option. In my opinion, we should be seeing a positive turn on foreclosure bleeding sometime in the next few months.

For a full text of the Obama housing plan question and answer, click on http://public.superlativestudio.com/BlogDetail.aspx?id=2117