Today there are a huge number of homes in the United States with a market value that is less than what is owed on the home (commonly referred to as being "underwater"). Currently about 70% of all homes in the U.S. have a mortgage and about 24% of those are underwater. According to the U.S. census, there are 75 million owner-occupied homes in America, with about 12 million being "underwater." Sadly, a large number of those homeowners lose their homes to foreclosure or must sell their homes through a "Short Sale," walking away with nothing. But, there are many homeowners out there who, in spite of being "underwater" continue to pay their mortgages each month at rates well above the available current rates. For those who may not be aware, there is currently a program in place called "Home Affordable Refinance Program" or HARP 2, that makes it possible for some homeowners with loans owned by Fannie Mae or Freddie Mac to refinance to current rates, if they qualify. Today, President Obama called for a similar program for loans not owned by Frannie or Freddie. Congress must vote on the latter program and there is no guarantee that it will pass. It's likely that this political issue will keep them arguing for a long time...
Today's Topics includes information on the HARP 2 program and President Obama's proposed plan. If you or someone you know have a loan that is owned by Fannie or Freddie, be sure to review the information and see if you might quality to refinance.
Be sure to check out the January Housing Trends Newsletter that is posted at my website.
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