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Old 10-12-2008, 05:11 PM   #97 (permalink)
Nietzsche13
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Join Date: Jul 2003
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Quote:
Originally Posted by MODE ROGUE View Post
Not a lot of details yet. From what I understand, home owners with negative equity will be able to refinance their home at 90% of the current market value. The government insures the difference (i.e. – neg. equity) which translates to a write off for the bank. If the homeowner sells the property in the future, 50% of any proceeds are returned to FHA.

Clearly, this would allow people to salvage their home & credit and take advantage of a low, fixed (30 yr) interest rate.
I don't like the part where the government insures the losses.
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