U.S. weighing new mortgage plan
October 30, 2008 · Print This Article
According to sources the government is expected to soon announce that $50 billion will be devoted to addressing the mortgage crisis.
The government is expected to announce soon that it will devote up to $50 billion to directly address the source of the financial crisis: bad mortgages and millions of homeowners at risk of foreclosure.
White House spokesman Tony Fratto said on Thursday that “no decisions” have been made on “a number of housing proposals” that the administration has been reviewing “for some time.”
But three administration officials indicated to CNN that the new program would be designed to prevent foreclosures by having lenders reduce delinquent borrowers’ mortgage payments to affordable levels. In exchange the government would guarantee some percentage of each loan to backstop lenders if borrowers re-default on modified mortgages.
At this point, the integrity of the markets is critical. Investor confidence is ever so important. So, any injection of economic fuel into this economy will benefit real estate investors. Keep an eye on this one. There are certainly some positive benefits from this that could go into the pockets of real estate investors. Hopefully very soon.
Carleton Sheets is an expert real estate investor and the author of the No Down Payment System. Of course, Carleton is an avid real estate investor. However, he is also passionate about teaching others about how to build their real estate investment empire.
Comments
Got something to say?