reBlog from Administrator: Obama to US Banks: Expand Foreclosure Prevention!

I found this fascinating quote today:

Editor’s Note: The Obama Administration has moved to increase a qualifying hurdle for homeowners called Loan-to-Value (LTV) ratios from 105% to 125%.  That means, before this adjustment, if your house is currently worth $200,000 and you owe $250,000 on your mortgage, you now qualify for a loan modification with this increase in this ratio.  The challenge is that on the West Coast (California, Nevada, Arizona) and other states with higher median loan values during the housing bubble inflation period, 125% is still not high enough to provide relief through loan modification.  What about the families that have experienced dramatic value losses on their homes due to severe foreclosures in their neighborhoods and are now 150%-175% LTV?  The California Association of Realtors (CAR)  and other trade groups had been asking Congress and the last administration to consider a higher LTV for over a year.  I’m glad that it has now occurred but can the current administration be doing more?Administrator, Obama to US Banks: Expand Foreclosure Prevention!, Jul 2009

You should read the whole article.