The new housing plan was announced today and I have to say I am hopeful.

Here are some of the details that came out in it.

• Helping borrowers who owe more than 80% of their home’s value to refinance and reduce their monthly payments.
• Creating a $75 billion homeowner stability initiative to reduce monthly payments for at-risk borrowers by subsidizing interest rates. The goal would be to bring payments to no more than 31% of a borrower’s income.
• Providing multiple incentives to servicers to modify loans and to proactively help at-risk borrowers while they are still current in their payments.
• Creating a $10 billion fund to protect investors and servicers against further home price declines.
• Requiring all financial institutions receiving government funds to participate in a standardized loan modification program, while seeking to have all federal agencies that own or guarantee loans also apply the guidelines.
• Allowing judges to modify mortgages during bankruptcy, a measure the financial industry has strongly opposed.
• Providing more Treasury Department backing of Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) and expanding the number of mortgages the agencies back.

As much as I don’t like the prospect of supplementing someones bad judgment in getting a loan they could not afford, I understand that we need to stem the tide or foreclosures and stabilize the housing market for the betterment of everyone.

What is important to realize is that the real estate market is extremely localized and that Southeastern North Carolina is doing much better than a lot of the rest of the country.  Our real estate experts can help you with all of your real estate needs.  Visit us today at www.SeaCoastRealty.com.