Lee Ginsburg

The Housing Stimulus Package Continued
August 25, 2008 · Lee Ginsburg · Comment here

This is my third and probably final thought on the recent Housing Stimulus Package. 

 http://www.pruvoices.com/2008/08/housing-stimulus-package-i-dont-think-so/
http://www.pruvoices.com/2008/08/is-this-new-stimulous-package-going-to-help-the-bay-area/ 

The FHA foreclosure rescue is a great idea but I don’t think it is practical, at least not in the Bay Area Market that I am familiar with.  The FHA will offer to qualified buyers a new fixed rate loan at 90% of today’s market price for the home they are living in and that they own and owe considerably more money.   With this program the owner shares the future appreciation with the FHA.  This adds to family stability and less homes on the market and gives the family to gain some equity.  I think the original lender will lose more under this than with the foreclosure process but it might be easier, quicker, look better on their books and they also gain a new guaranteed loan.  In my opinion too many ifs to make this work in large numbers but the thought is GREAT.  Read more