Expert Explains Mortgage Help Program

Joining news10.net's Live_Online Tuesday was Jeff Tarbell of Comstock Mortgage and host of a weekly radio talk show called "Talkin' Money." He discussed a new program that could help half a million homeowners avoid foreclosure. The federal government and the mortgage industry have a plan to speed up the process for renegotiating those Fannie Mae and Freddie Mac.

Tarbell says that to qualify for the program, borrowers would have to be at least three months behind on their home loans, and would need to owe 90 percent or more than the home is currently worth. Investors who do not occupy their homes would be excluded, as would borrowers who have filed for bankruptcy.

The interest rate or principal amount of the loan would be reduced so that borrowers would not pay more than 38 percent of their income on housing expenses.

Another option is for loans to be extended from 30 years to 40 years, and for some of the principal amount to be deferred interest-free.

It's not known how many homeowners could benefit from this program which goes into effect December 15.

Fannie Mae and Freddie Mac own or guarantee nearly 31 million U.S. mortgages, or nearly six of every 10 outstanding.

Tarbell can be heard every Saturday at 9 a.m. on "Talkin' Money" on KHTK 1140 Radio in Sacramento.