Can I Borrow 6 Billion Dollars Please

Home prices are at their most affordable in many years, which has opened up homeownership to many who had been locked out during the housing boom. And now, the federal government -- and many states - are launching plans to hook up buyers of repossessed properties with very attractive terms.

The feds made nearly $6 billion available for the Neighborhood Stabilization Program, which intends to combat blight by reducing the number of foreclosed homes on the market.

The money, which has only started to flow during the past few weeks despite much of it being authorized last summer, will go to state and local housing authorities and non-profit organizations involved in providing housing for middle- and low-income families.

"The NSP was designed to help deal with all the properties in foreclosure around the nation," said Antonio Reilly, executive director of the Wisconsin Housing and Economic Development Authority (WHEDA), which will administrate the program in several counties in the state. Respectively (I Guess)

The bulk of the NSP funds will come from the $3.92 billion that was approved as part of the Housing and Economic Recovery Act of 2008 passed in August.

By regulation, these funds must be spent in communities with the highest incidences of foreclosures and subprime loans. They'll go to helping households earning no more than 120% of the median income of the local area, with 25% of the money going to families earning less than half the median

So we have already identified the fact that lenders made loans available called:
SIVA, SISA, NINA. Why were those loans made? Because they didn't qualify for a loan that's why! My point is this, once again it seems like there's a lot of talk and
not enough action to stop the crisis to those that need it most. I promise you the
105% FHA Refinance product is worthless in markets where the loss is well over 50%
of the loan to value.

-Christopher Rockey