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The Obama Administration today announced more targeted support for homeowners struggling with unemployment who are at risk of losing their homes.
The $1 billion initiative, known as the “HUD Emergency Homeowners Loan Program,” aims to provide 24-month bridge loans to those unable to keep up with monthly mortgage payments.
The loans are zero percent interest, non-recourse, subordinate loans (second mortgages), up to $50,000.
Eligible borrowers include those who are at least three months delinquent, but have a “reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years.”
The mortgage must be tied to the borrower’s primary residence, and they cannot own a second home.
http://www.thetruthaboutmortgage.com...-loan-program/
Let's see, do I have this right.
Tax money will be "given" to underwater, in-over-their-heads, "homeowners" in order to allow them to not walk away (at this time, their time will come, apparently in 2 years), sending those public funds to the banks that originated the most-likely fraudulent mortgages.
An added enhancement? The new debt is added to the mortgage (negative amortization, as predicted) and will strengthen the bank's debt portfolio.
The kicker: the “reasonable likelihood of being able to resume repayment" folks are currently unemployed. No job. May never get one, especially one that pays as much as the one they lost.
The $1 billion initiative, known as the “HUD Emergency Homeowners Loan Program,” aims to provide 24-month bridge loans to those unable to keep up with monthly mortgage payments.
The loans are zero percent interest, non-recourse, subordinate loans (second mortgages), up to $50,000.
Eligible borrowers include those who are at least three months delinquent, but have a “reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years.”
The mortgage must be tied to the borrower’s primary residence, and they cannot own a second home.
http://www.thetruthaboutmortgage.com...-loan-program/
Let's see, do I have this right.
Tax money will be "given" to underwater, in-over-their-heads, "homeowners" in order to allow them to not walk away (at this time, their time will come, apparently in 2 years), sending those public funds to the banks that originated the most-likely fraudulent mortgages.
An added enhancement? The new debt is added to the mortgage (negative amortization, as predicted) and will strengthen the bank's debt portfolio.
The kicker: the “reasonable likelihood of being able to resume repayment" folks are currently unemployed. No job. May never get one, especially one that pays as much as the one they lost.
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