Plan C for the Treasury
Department to try to keep More
Homes from going into
Foreclosure
The latest buzz hitting the street is taking place behind closed doors for the Treasury Department to consider a massive plan to make 4.5% interest rates available that you can read about by Clicking Here.
Financial industry lobbyists are urging the Treasury Department to take steps to lower mortgage rates and help stabilize the battered U.S. housing market.
If enacted, such a plan would be an unprecedented opportunity for anyone with good credit and a solid income who could qualify for a mortgage at the lowest rates on records dating to the early 1960s, said Keith Gumbinger, senior vice president at financial publisher HSH Associates.
Under one proposal, Treasury would seek to lower the rate on a 30-year mortgage to 4.5 percent by purchasing mortgage-backed securities from Fannie Mae and Freddie Mac, Scott Talbott, chief lobbyist at the Financial Services Roundtable, said Wednesday.
Plan A and B don’t seem to be working too well so it’s time to break out a new plan. Quite interesting to say the least and we’ll be awaiting the details if this plan comes to fruition with the strings that will be attached.
Proposed Real Estate Winners:
- Financial Institutions that will be making the loans
- Banks that are sitting on a growing inventory of homes they need to sell
- Buyers that have been sitting on the fence waiting it out
- Markets already decimated with foreclosures and real estate prices that have already fallen such as Las Vegas, Phoenix, Parts of California and Florida. (4.5% interest rates on real estate that has already gone through a major price correction = WOW!)
The Probably Not So Lucky People:
- Homeowners with bad credit
- The huge number of people that have become unemployed this year.
- The Millions of People with ruined credit from just the past two years and will not qualify
- Homeowners already so upside down on the values of their homes that it still does not help.
From the Article:
Still, the industry plan is not likely to help borrowers whose credit is so damaged that banks don’t want to lend to them.
“It doesn’t do anything to help all the borrowers facing foreclosures,” said Guy Cecala, publisher of Inside Mortgage Finance, a trade publication. “It’s going to benefit the people who have equity in their home, who have decent credit and can refinance.”
No details have been finalized but we’ll certainly be watching for the details if the financial lobbyists get their way.
