A new government program got underway this week, that could help homeowners who feel they're drowning in their mortgage to come up for air. It's called the FHA Short Refinance Option, and it allows borrowers who owe more on their home than the home is worth to refinance into a government-backed FHA Loan.
Nicolas Retsinas, a Senior Lecturer in Real Estate at the Harvard Business School, explains.
Retsinas predicts the program won't prevent all foreclosures, and certainly won't turn around the housing market by itself, but it can't hurt.
Retsinas believes the best way to turn the housing market around at this point is to find ways to get people back to work.
Loans already backed by F-H-A are not eligible. Homeowners who think they might qualify for the program are advised to talk to their mortgage servicer about the possibility of moving into an F-H-A loan.
To learn more, click here: http://www.hud.gov