Housing Rescue Plan

by Scott Feldman

It looks like Washington to the rescue for thousands of Long Islanders trapped in mortgages they can't afford on homes that have plunged in value. Cynics say he's only doing it because it is an election year and the Republicans need help, but President Bush is now reversing himself and backing a bill to help struggling homeowners get new, cheaper loans. In a nutshell, a homeowner facing foreclosure would be able to refinance to a more affordable, fixed-rate loan that would be backed by the Federal Housing Administration. Lenders would accept potential big losses on the loans, but at least get some kind of payoff that could offset what is often times a costly foreclosure process. As Dowling College economic scholar Irwin Kellner puts it, "half a loaf of bread is better than nothing." As for homeowners, he thinks it is clearly not going to save everybody. There are some people he says lenders never should have made the loans to in the first place. Nassau's housing and homeless services chief Connie Lassandro tells me she is getting anywhere from 125 to 160 calls a week from people pleading for help who can't pay their mortgages. She's looking for more details on this rescue program, before she's ready to give it her stamp of approval. If you need assistance, you can call Connie's hotline number: 516-572-0858. There is also affordable housing help from the Long Island Housing Partnership. Their website is www.lihp.org