No loan payments are due by homeowner on the existing loan for up to 5 years, then become due and payable with interest. Federal government to guarantee repayment of monthly payment amounts to 1st mortgage holder when due at end of amnesty period. An economic recovery in 3-5 years would restore home values, homeowner equity and the jobs market, enabling the homeowner to settle with the mortgage holder for the total amount of deferred loan payments due, and at no cost to Federal Government for the entire program. If the homeowner defaults during the amnesty period, the Federal Government would repay the deferred payments - a relatively small amount.
This plan would work best where only a 1st mortgage is involved, but could apply to other circumstances. This space is insufficient to ..
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