Report: Treasury Still Mulling Mortgage Options Ahead Of Obama Speech
By: Import User
Updated: February 17, 2009
(Washington, DC) -- So-called underwater mortgages are up next on President Obama's economic agenda.
The president heads to Phoenix, Arizona tomorrow to unveil some sort of plan to sink 50-billion dollars into helping homeowners stay afloat.
The money would come from the remaining bank bailout money, but his ideas are only penciled in for now.
The "Wall Street Journal" reports the Treasury Department is still toggling between ten different proposals and hasn't picked one yet.
A cut in interest payments tops the list of possibilities.
That particular boost might be extended to borrowers who haven't yet fallen behind, but are close to defaulting.
Currently, mortgage giants Fannie Mae and Freddie Mac will only redo loans for people 90 days or more in arrears.
A big "if" is whether homeowners will be allowed to refinance if their home's value has sunk to less than their mortgage.
Banks normally treat such underwater mortgages like toxic waste.
While the big banks wait to see what the Obama administration will unveil Wednesday, several have halted foreclosure actions.
Bank of America, JP Morgan Chase and Citigroup are giving a reprieve only to owner-occupied residences until early March.
(Copyright 2009 by Newsroom Solutions)
