Banks start reducing principle for loan modifications
This just reported by the Wall St. Journal online, Banks Bite Bullet on Loans, Lenders Start to Write Off Some Principal in Modifying Terms for Troubled Mortgages
Freddie Mac press release announces another plan for dealing with foreclosed properties:
PRINCE GEORGE’S COUNTY EMPLOYERS HELP STABILIZE NEIGHBORHOODS IMPACTED BY FORECLOSURES
Homeowner Education Project Helps Employees Live Near WorkMcLean, VA – Home prices have dropped, but many working families are still struggling to find affordable homes near their workplace and funds for down payments. Three Prince George’s County, Md., employers are assisting employees in becoming homeowners near their offices and helping neighborhoods impacted by foreclosures. There are 3,100 foreclosed properties in Prince George’s County.
Dimensions Healthcare System, University of Maryland College Park Campus and the U.S. Census Bureau are providing workplace workshops so employees can be more informed homebuyers who better understand the lending process and Neighborhood Stabilization Programs, which provide down payment and closing cost assistance to eligible homebuyers to purchase vacant foreclosures.
The collaborative project, based on the Freddie Mac (NYSE: FRE) Workforce Home Benefit employer-assisted housing toolkit, brings together employers, mortgage lenders and housing counseling agencies to provide mortgage information and workshops on purchasing a home, pre-purchase counseling, as well as information on special down payment and closing cost assistance programs such as the County and City of College Park programs.
The Down Payment on Your Dream program offered by Prince George’s County provides up to $20,000 of down payment and closing cost assistance to purchase vacant foreclosures in targeted zip codes. Through the Work and Live College Park program, the City of College Park provides up to $35,000 of down payment and closing cost assistance to purchase in the 20740 zip code. Both of these programs stabilize neighborhoods by turning vacant and abandoned foreclosed properties into livable occupied homes in Prince George’s County.