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O’Bama Foreclosure Fix (take 1)

From CNN.com

Obama foreclosure fix open for business The Obama administration’s foreclosure prevention program is open for business. The multipronged fix calls for companies to help struggling borrowers by modifying loans so monthly payments are no more than 31% of monthly gross income. Under the program, homeowners who haven’t missed a payment can refinance into lower-cost loans even if they have little or no equity. The $75 billion plan will provide incentives to borrowers and loan servicers and investors to spur mortgage modifications. The government will also subsidize interest rate reductions to get borrowers to affordable monthly payments. “This plan will help make home ownership more affordable for nine million American families and in doing so, help to stop the damaging impact that declining home prices have on all Americans,” said Housing Secretary Shaun Donovan. Borrowers can now contact their servicers to see whether they are eligible for assistance. Federal officials will promote the program at homeownership events nationwide.

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