“Appreciating America” Provides National Mortgage Relief Solution For Homeowners and Lenders

Plan Developed by Refinance.com

NEW YORK (Business Wire EON) April 24, 2008 -- In an April 23 letter to Federal Housing Authority Commissioner Brian Montgomery, Congressman Steve Israel (D-NY) urged further action from the federal government to help address the national mortgage crisis and the burden it’s placing on America’s middle class families. In particular, Congressman Israel highlighted an innovative plan, “Appreciating America,” developed by the home financing experts at Refinance.com that was announced by its chief executive, Nicholas Bratsafolis, which could provide much needed mortgage relief for homeowners in need.

While it is clear that there is no 'one size fits all' solution to the foreclosure crisis, I believe this plan could be one of many helpful resources to those facing foreclosure.

“As the vast impact of the mortgage crisis becomes apparent, it is clear that we in the federal government must do more to address the problem,” wrote Congressman Israel. “While legislation is pending before Congress, there are some other steps that might be taken immediately to alleviate the burden of the crisis on middle class families. A constituent of mine (Nicholas Bratsafolis) has developed the Appreciating America proposal. I believe it can play a critical part in fixing this problem and is particularly relevant for homeowners whose property is worth less than the original mortgage balance.” Congressman Israel also noted that when combined with counseling services, the Appreciate America plan could be one of many helpful resources that should be made available to those facing foreclosure.

In its simplest format, Appreciating America is a national plan to help homeowners, and their lenders, whose property is worth less than the original mortgage balance. Often, these properties need to be refinanced due to a resetting ARM which puts the property in danger of foreclosure.

The plan allows homeowners to refinance their “underwater” mortgage up to 85% of the current value of the home. Any remaining balance is put into a second mortgage with no payments for five years. After five years, the homeowner and lender will share in any appreciation of the home to pay off the second loan. The first mortgage offers an affordable monthly payment which prevents financial ruin and foreclosure for the borrower. After a defined period of time, the second mortgage is paid off to the lender, with the lender and borrower sharing in any appreciation on the home.

“Finding an answer to this unprecedented mortgage crisis cannot solely be the responsibility of Congress. Corporations have to step up and take some responsibility for navigating homeowners through this dark time,” said Nick Bratsafolis. “In developing Appreciating America, we believe we’ve found a solution that can prevent foreclosure for homeowners and reduce lender write-downs, beginning a process to repair the ailing US housing market.”

The existing servicer does not have to foreclose or write down the existing mortgage and, in fact, may recover some or its entire original principal and accrued interest under the shared appreciation second mortgage.

“As you continue to negotiate relief in the current housing crisis, I urge you to include the Appreciating America plan components that I have outlined in this letter,” wrote Congressman Israel. “While it is clear that there is no ‘one size fits all’ solution to the foreclosure crisis, I believe this plan could be one of many helpful resources to those facing foreclosure.”

To obtain a full copy of Congressman Israel’s letter, and further information on Appreciating America, please contact Jemile Dragovic at jdragovic@middlebergcommunications.com.

About Refinance.com

Refinance.com is one of the nation’s leading mortgage companies with nearly twenty years of mortgage refinancing expertise. The company has assisted thousands of clients in reaching their home refinancing goals through its diverse range of mortgage and refinancing options, and specializes in FHA mortgage lending. Founded in 1989, Refinance.com is based in New York City with offices in Syosset, NY and Boca Raton, FL. More information including mortgage rates and mortgage calculators is available at www.refinance.com.

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