[quote=ibjames] So if your mortgage is $210,000, your property can’t be worth less than $200,000.
so.. it won’t work in california[/quote]
No. It won’t work for Temecula or Escondido (where price has dropped a lot). But it would work for the costly coastal area where price has not dropped a lot (assume the person bought with a downpayment). It is aimed to stop the Alt-A folks to have their payment reset to higher rate, and they would instead be able to lock into 5% 30-years fixed at much lower monthly cost.
