Obama just announced that they'll allow the government agencies responsible for financing the housing bubble to try to prop that bubble up by allowing refis of up to 125% of the house's "value" (original price?). I can't imagine who'd buy such an instrument from them, but just a word to the wise, don't do it if it tempts you.
Refis are 2nd mortgages and are recourse loans; unlike 1st mortgages, if you default on a refi, they can take the house, then come after you for the rest.
Friday, June 19, 2009
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