President Obama is adding details to his State of the Union proposal to help out underwater mortgages. The President says he's sending Congress a "Homeowners Bill of Rights" to make the mortgage and refinancing process simpler.
Some of the things the President is proposing could help a large number of Southwest Florida homeowners underwater in their mortgage. Property values have dropped so much it's hard for them to take advantage of record low interest rates. The President wants to make it so they can.
Under the "Household Bill of Rights" he's going to send to Congress, homeowners who are current on their payments for the last six months, have a credit score above 580, a loan within F.H.A. limits and live in the house they want to refinance. They would find a streamlined process to make it possible.
The White House believes the average homeowner would save hundreds of dollars a month, and about $3,000 a year. President Obama says the plan will help millions of homeowners who are trapped by falling home values and red tape.
Also included in the President's "Household Bill of Rights" is a simpler mortgage form so you know exactly what you're getting and paying for, without any hidden fees or penalties.
The plan would have to get through Congress to get started and the administration has not been able to get support already for the $5 to $10 billion tax on the large banks that would be needed to cover the costs.