Q&A: Mortgage Relief

Q&A: Mortgage Relief

	Provisions of the bill

	What exactly will the legislation do?

	Who is eligible?

	When does the program start?

	Since lenders can pick and choose which loans to refinance, how can consumers determine if theirs will be selected?

	Is there anything a homeowner can do to improve chances of benefiting from the program, such as crunching numbers to make a case for the bank?

	But doesn't this provide an incentive to NOT pay your mortgage, if you're barely keeping ahead of bills and are underwater on your house, so you can qualify?

	So what should I be doing now besides trying to keep up with payments?

	If the banks and lenders refuse to write these loans, then what?

	What happens if I'm able to sell my home after I refinance?

President Bush signed a massive housing bill on July 30, 2008, intended to provide mortgage relief to some 400,000 struggling American homeowners and stabilize financial markets.

The measure, regarded as the most significant housing legislation in decades, lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes. It also offers a temporary financial lifeline to troubled mortgage companies Fannie Mae and Freddie Mac and tightens controls over the two government-sponsored businesses.

<<< Click on the questions at left to learn more about the Hope for Homeowners Act of 2008: Credits: AP