NEWS

Homeowner Affordability And Stability Plan

Date: Feb. 23rd, 2009
Contact: Kelli Brown Cherry Creek Mortgage
The Obama administration announced their roadmap to help current homeowners fight foreclosure. Dubbed the Homeowner Affordability and Stability Plan, the plan is designed to give more homeowners the opportunity to refinance. Millions of homeowners may have been unable to take advantage of the low mortgage rates because their loan to value (LTV) has become to great. The Homeowner Affordability and Stability Plan will, in a nut shell, allow homeowners to refinance even if they are in a situation where the value of their home is not in line with the amount they owe. By refinancing at a lower mortgage rate, and lowering monthly payments for homeowners, this should in turn reduce the number of foreclosures. Because foreclosures are such a large threat to the stability of a neighborhood and surrounding community, (up to a 9% decrease in surrounding home values according to some estimates), this plan is expected to stint the current spiral.

The plan also has several provisions that are expected to keep mortgage rates low. To learn more, check out the Treasury Department's summary of the program here.