2 New Federal Programs to Help Borrowers Pay Their Mortgages

New York Times
August 30, 2010
P. B5

The Federal Housing Administration in the next few weeks will launch a refinancing program to help struggling borrowers pay their home loans and also offer an emergency loan initiative to help jobless homeowners to stay put. Record foreclosures have swollen the supply of for-sale homes, causing residential prices to slide. Meanwhile, lower prices and favorable borrowing costs have not been able to rejuvenate the market for new homes. "We are going to continue to make sure folks have access to home ownership," Housing Secretary Shaun Donovan said of the new efforts. However, he added that it is too soon to say whether the Obama administration would revive the $8,000 tax credit for first-time home buyers that expired on April 30. However, Florida Gov. Charlie Crist -- whose state has one of the highest rates of foreclosure in the nation -- argued that bringing back the tax incentive would "help enormously" in the campaign to mitigate foreclosures and perk up the economy. Both men made their remarks on CNN's "State of the Union" program.
Web Link