Treasury May Unveil New Plan to Subsidize Troubled Mortgages
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According to reports from Reuters, the U.S. Treasury is looking at a new plan to subsides mortgages and stem home foreclosure. Under the plan, new incentives will be given to lenders and investors to modify troubled mortgages.
On scenario suggests investors in second liens would receive a cash payment if they agree to ease the terms of troubled loans and accept a smaller return on their mortgage investment.
Another option suggests subsidies could be given to encourage 'short sales', or a house sale below the current loan amount.
Treasury officials are expected to unveil further details of the program soon, according to sources.
Link to Reuters Article
On scenario suggests investors in second liens would receive a cash payment if they agree to ease the terms of troubled loans and accept a smaller return on their mortgage investment.
Another option suggests subsidies could be given to encourage 'short sales', or a house sale below the current loan amount.
Treasury officials are expected to unveil further details of the program soon, according to sources.
Link to Reuters Article
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