auction-sign-0310.jpgThe seven million households that are behind on their mortgage payments aren’t the only ones who will be thrown a life vest under a new federal program announced Friday. The $50 billion program would also attempt to stabilize the housing market by creating incentives for lenders to reduce the principal on mortgages that are now worth less than the homes they are secured by. The number of homeowners now estimate to be “underwater” is 11 million, though not everyone would be eligible for the principal reduction: To qualify, you must owe more than 115 percent of the value of your home and be spending more than 31 percent of your monthly income on your mortgage. The feds also plan to offer $1,500 in relocation assistance to homeowners who sell their homes rather than letting them go into foreclosure.
A Bold U.S. Plan to Help Struggling Homeowners [NY Times]
Photo by hoff_john


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  1. The way you are whining, whining, whining this morning, DH, sounds like you are auditioning for being a republican politician.

    Posted by: Petebklyn at March 29, 2010 9:48 AM

    It’s a crappy day – gimmie a break.

  2. Banks got free money for being stupid

    Homeowners get free money for being stupid

    How about some of us people who weren’t stupid get some $$$ – i need a new stereo and sofa

    There’s also kids out there up to their eyeballs in high interest student loan debt.

  3. so, DH, go buy a home get $8000.

    Or buy some agricultural land out in midwest where supposedly all you hipsters come from…..they get lots of money not to grow.

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