Who Will be Eligible for Foreclosure Help?

With the federal government hoping to finalize details for its $75 billion foreclosure prevention program by March 4, officials are fine-tuning eligibility requirements.

So far, they are targeting borrowers who spend more than 38 percent of their earnings to make loan payments on primary residences.

The Mortgage Bankers Association wants the Obama administration to broaden the refinancing component of the initiative, noting that the threshold of 105 percent of a home’s current property value is inadequate to help home owners in battered housing markets like Arizona, California, and Florida.

Source: Washington Post, Renae Merle (02/20/09)