Recent reports indicate that President Obama will announce more measures to prevent foreclosures throughout the U.S. The new plan encourages the Federal Housing Administration to insure lenders against part of the losses they'll sustain after reducing the principal balances on borrower's notes. Lenders will be asked to bring the note balance down below the homes current value. When there is a 1st and a 2nd the guidelines will permit no more than a 115% LTV after the note balances are reduced. Also in the plan is a provision for the Treasury to pay a portion of an unemployed homeowner's loans for up to three months while they look for a … [Read more...]