Quick facts on the new FHA bailout program

• Borrowers must have at least 3% equity in the home. That requirement alone is going to eliminate many borrowers who now owe more on their home than it is worth.
  
• More than a quarter of subprime borrowers have missed a payment before their rates reset. That is a fact making political solutions more difficult.
  
• About 48% of the subprime borrowers won't qualify to refinance into a mortgage that conforms to the new standards given by Fannie Mae and Freddie Mac.
  
• The 1/2 point interest rate cut just passed by the Federal Reserve will do very little to help those whose mortgages are adjusting.
  
• U.S. home prices fell by 3.2% in the second quarter of this year, setting a new record.
  
• It would take nearly 10 months to sell off all the existing homes on the market right now; the longest amount of time in at least 8 years.
  
• The average increase for a rate reset is 26%, or about $400.00 per month.
  
  

Here's hoping that there will be better news to relay to you next time!

As always, 'til next time - it's all good!