What is the government doing to help homeowners avoid foreclosures?
Among other things, the administration’s Home Affordability Refinance Program has been expanded, making refinance mortgages available to homeowners whose current loan balance is up to 125 percent of the home’s market value. Shaun Donovan, secretary of the Department of Housing and Urban Development announced the new parameters. “I believe this will make a critical difference in our ability to help many more Americans stay in their homes,” he said. Originally, the refinance program applied to a borrower whose mortgage, owned or guaranteed by Fannie Mae or Freddie Mac, did not exceed 105 percent loan-to-value. The expansion to 125 percent should broaden the program’s reach to deeply underwater borrowers. To find out more about national real estate columnist Jim Woodard, visit the Creators Syndicate Web site at www.creators.com.
