Foreclosure Modifications

 

Interview with Kendall Coffey 

Miami-Ft. Lauderdale Market
WFOR CBS4News 2/18/2009   6:00 pm   
 
(Barack Obama speaking]
Antonio Moore:     I’m Antonio Moore.  The presidential announcement couldn’t have come at a better time.  In Miami-Dade county alone, there were record number of foreclosures in January: 6,042.  That’s the highest ever in a single month.  Tens of thousands of South Floridians will now qualify for help.  CBS4 Your Money Reporter, CBS4’s David Sutta is on Miami Beach.  David, you’re going to break down exactly what this plan will mean for homeowners.

David Sutta:     You know, this is not only going to help people that are already in foreclosure, this plan is going to help the people that are on the verge of foreclosure.  We’re talking about the people in South Florida that are spending 30 to 40% of their money to pay their mortgage.  This is also going to help you people at home that are owing more on your house than it’s worth. 

[reporters interviewing homeowners]
[Barack Obama speaking]   

David Sutta:     First, mortgages will be modified so you no longer are paying more than 31%, of your income on your home.  For a person making $55,000, a typical payment on a $300,000 home would drop from $1900 to $1400 a month.  That’s $500 back in your wallet every month.  But the banks aren’t losing money here.  The government’s just picking up the tab.  The president also has a proposal for those of you who owe more on your home than it’s worth.  Mortgages guaranteed by Fannie Mae and Freddie Mac can now be refinanced up to 105% of the current value of the property.  Previously it was 80%.  So, if you owe $315,000 on a home that’s worth just $300,000 you’re now able to refinance through the government program.      The final point is for those facing bankruptcy:  Congress is going to be asked to allow bankruptcy judges to adjust what you owe on your house based on what it’s worth--something never done before – not even during the great depression.

Kendall Coffey:     This is going to be a new territory, a new set of fascinating questions, and it will not be an easy thing for the Obama administration to give bankruptcy judges the power.

David Sutta:     Three points of hope for families in South Florida trying to keep the American dream alive.