Renewed Attention to Halting Foreclosures
With foreclosures continuing to rise, Rep. Joe Sestak (D-Pa.) hopes to spark interest in a bill that would give borrowers who owe more than their homes are worth new FHA mortgages.
The Homeownership Vesting Plan Act—which received little attention when first introduced in March—would pay original lenders the difference between the old and new loans over the next five years, and pay mortgage servicers $1,000 for each loans they agree to convert, while borrowers would get a lower rate on a smaller loan.
Crafted to reduce foreclosures and help keep home prices from sinking further, the legislation seeks to pay for the $50 billion initiative largely with unused TARP money that was set aside for less successful home-loan workout programs.
Source: Philadelphia Inquirer, Joseph N. DiStefano (10/16/09)
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.