WHOA!!! Is this right??

[Mike]

Am I reading this correctly??? This is taken directly from the .pdf of the housing bill that was just passed.Section 1402 (page 152 & 153 of 260)‘‘(k) EQUITY AND APPRECIATION.—‘‘(1) FIVE-YEAR PHASE-IN FOR EQUITY AS A RESULT OF SALEOR REFINANCING.—For each eligible mortgage insured underthis section, the Secretary and the mortgagor of such mortgageshall, upon any sale or disposition of the property to whichsuch mortgage relates, or upon the subsequent refinancingof such mortgage, be entitled to the following with respectto any equity created as a direct result of such sale or refinancing:‘‘(A) If such sale or refinancing occurs during the periodthat begins on the date that such mortgage is insuredand ends *1 year after* such date of insurance, *the Secretaryshall be entitled to 100 percent of such equity*.‘‘(B) If such sale or refinancing occurs during the periodthat *begins 1 year after* such date of insurance *and ends2 years after* such date of insurance, *the Secretary shallbe entitled to 90 percent of such equity and the mortgagorshall be entitled to 10 percent of such equity*.‘‘(C) If such sale or refinancing occurs during the periodthat *begins 2 years after* such date of insurance *and ends3 years after* such date of insurance, *the Secretary shallbe entitled to 80 percent of such equity and the mortgagorshall be entitled to 20 percent of such equity*.‘‘(D) If such sale or refinancing occurs during the periodthat *begins 3 years after* such date of insurance *and ends 4 years after *such date of insurance, *the Secretary shall be entitled to 70 percent of such equity and the mortgagor shall be entitled to 30 percent of such equity.*‘‘(E) If such sale or refinancing occurs during the periodthat *begins 4 years after* such date of insurance *and ends5 years after* such date of insurance, *the Secretary shallbe entitled to 60 percent of such equity and the mortgagorshall be entitled to 40 percent of such equity.*‘‘(F) If such sale or refinancing occurs during *_any _periodthat begins 5 years after* such date of insurance, *the Secretaryshall be entitled to 50 percent of such equity andthe mortgagor shall be entitled to 50 percent of such equity.**‘‘(2) APPRECIATION IN VALUE.—For each eligible mortgageinsured under this section, :eek::eek:the Secretary and the mortgagorof such mortgage shall, upon any sale or disposition of theproperty to which such mortgage relates, each be entitled to50 percent of any appreciation in value of the appraised valueof such property that has occurred since the date that suchmortgage was insured under this section.*:eek::eek:So, if you do qualify for this new housing bill that starts 10-1-08, you could be paying lower monthly mortgage payments, but you forfeit ALL equity in your house forever? So, in essence,you're renting your own house, but paying for all maintenance, property taxes and insurance???? :eek:This is in contrast to all of the information that I've gathered from the FHA website and others which says only the equity gained within the first 5 years after the re-writing of the loan was subjected to forfeiture.