March 3rd, 2009 | |
Posted in family, fyi, health, life, parent stuff, the good, the bad, and the otherwise, the house and home, what's going on??

On February 10th, the Treasury Secretary, Timothy Geithner, explained how the financial stability plan will be critical in supporting some type of effective economic recovery by potentially curtailing up to $4M in additional foreclosures regardless of what mortgage companies owns or services the loans. But for so many of us well-intended tax paying families and individuals we want to know exactly how it can help us.
This plan is designed to help people who are current on their mortgage but are in danger of defaulting on their loan in the near future due to a high combined mortgage debt compared to income or who is “underwater” (with a combined mortgage balance higher than the current market value of his house), in other words, they owe more than the current value of their house. By government analysis, as many as 6 million families are expected to face foreclosure in the next several years, with millions more struggling to stay current on their payments.
As we know the exact guidelines are going to be rolled out in the coming days. Since there is plenty incentive for both the mortgage provider ($1000 per loan modification/restructure and an additional $1000 per year up to three years, assuming the borrower stays current on payments) and the at-risk homeowners there is a lot of curiosity as to who exactly is eligible. A few things are clear; More »
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family finances