WKYT | Lexington, Kentucky | News

More help for distressed mortgage holders

WASHINGTON (AP) - Distressed homeowners who don't qualify for
other kinds of mortgage assistance could get some help today.
The Obama administration is planning a morning announcement.
The measures could help Homeowners who don't qualify for other
kinds of assistance. It would help borrowers avoid foreclosure by
selling their properties or returning them to lenders.
One way would be to encourage a "short sale." That involves
selling a home for less than the amount owed on the mortgage, but
the lender can still consider the debt paid. A short sale also
doesn't harm a borrower's credit record as much as a foreclosure
would.
Another way is a deed-in-lieu of foreclosure - in which the
borrower gives the property to the lender to satisfy a delinquent
loan and avoid foreclosure proceedings.
It's all part of the administration's "Making Home Affordable"
initiative. More details will be announced Thursday morning by
Treasury Secretary Timothy Geithner and Housing and Urban
Development Secretary Shaun Donovan.


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