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Last evening I heard that Fannie Mae is about to introduce a program to refinance mortgages for people who owe more than the current value of their homes, a situation known as being “underwater”.  It was also reported in the Wall Street Journal.  Click here to see the article and more particulars of this upcoming assistance.

This is the first time I’d ever heard that word before but think it is a great idea.  However, what bothers me is that it seems to take forever to get things in place.  I’m sure those homeowners who will qualify for this are probably thinking the same thing and that “sooner” would be better rather than “later”.

This program is going to be available to those people who are current on their mortgages and whose loans are owned or guaranteed by Fannie Mae.  To me that’s important.  If you read my blog on “Buyers Walking Away from Their Homes and Mortgages”, I don’t believe in rewarding or helping people who ignore their obligations.  Helping people who are struggling or are financially straped or who are trying to make a go of it but for reasons just can’t, I personally feel is a better way to help in the long run.  If you constantly help those who “walk away”, they will continue to do just that.

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