WASHINGTON — The Obama administration is trying to jump-start its sputtering plan to tackle the foreclosure crisis with an effort to assist up to 1.5 million homeowners who owe more on their properties than their homes are worth.
The Federal Housing Administration will allow lenders to give these “under water” borrowers refinanced loans if the lender agrees to forgive at least 10 percent of the original mortgage amount.
The plan, which was announced in March, is being made available starting today.
The FHA said in a document published last month that between 500,000 and 1.5 million homeowners are projected to be helped. However, the Obama administration’s previous efforts to stem foreclosures have fallen far short of expectations.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info