New Loan Assistance Program

bmcapra

I got this article off of the KARE 11 website regarding the new government plans to stop foreclosure. Does anyone know anything about this? We are not going into foreclosrue but we are upside down on our house, just wondering if we would qualify.  

WASHINGTON -- The Obama administration is trying to jump-start its sputtering plan to tackle the foreclosure crisis with an effort to assist up to 1.5 million homeowners who owe more on their properties than their homes are worth.
The Federal Housing Administration will allow lenders to give these "under water" borrowers refinanced loans if the lender agrees to forgive at least 10 percent of the original mortgage amount.
The plan, which was announced in March, is being made available starting Tuesday.
The FHA said in a document published last month that between 500,000 and 1.5 million homeowners are projected to be helped. However, the Obama administration's previous efforts to stem foreclosures have fallen far short of expectations.

WASHINGTON (AP) -- The Obama administration is trying to jump-start its sputtering plan to tackle the foreclosure crisis with an effort to assist up to 1.5 million homeowners who owe more on their properties than their homes are worth.

luckycooky

I don't know about this program specifically, but generally speaking if part of a debt is forgiven you will need to pay taxes on it as additional income.  I would be sure to ask if that applies to this program as well so you aren't being blindsided later and can weight out how much it will really cost/help you.

Melissa17

luckycooky:

I don't know about this program specifically, but generally speaking if part of a debt is forgiven you will need to pay taxes on it as additional income.  I would be sure to ask if that applies to this program as well so you aren't being blindsided later and can weight out how much it will really cost/help you.

I think that when they implemented these programs they also added a clause so the amount of the debt forgiven is not taxable.  Otherwise it makes no sense to help struggling home owners only to kick their arse with taxes.

bmcapra

As much as I want to do the program I kind of feel guilty since we are not struggling, I know there are other people out there that need the help. I will contact my mortgage guy and see what he says. Thanks for your input ladies, I didn't know about the taxing on the back end so that is a good thing to know in general,