Millions of mortgage loan borrowers in US who are sinking already, are likely to get a last round helping hand from the two largest lenders i.e, Fannie and Freddie in the coming months.
The government has now approved funding of homes whose values have dropped up to 25% over the last one year, which could make lot of defaulters turn good. But there is a bigger risk of these borrowers also defaulting a year or two later, because continued repayment depends on monthly earnings and not on one time loan support.