This plan, as Obama laid it out in Phoenix, AZ will help up to 9 million struggling homeowners from losing their homes. Homes, in the first place, that they should have never, EVER been able to 'purchase'- and I use that word loosely. The plan will help them refinance their loans with none other than Fannie Mae and Freddie Mac if they have lost value/equity in their homes. Surprised? Nope. "[T]he government plans to spend $75 billion to encourage lenders to modify loan terms for people at risk of foreclosure or already in foreclosure proceedings. Lenders and the government would jointly lower monthly payments to 31% of homeowners' income." (...that is $75B of the $275B plan) But as this article from the WSJ points out, this is still going to leave many millions who are not able to refinance through Mae or Mac if they still owe much, much more than the home is currently worth. "Mr. Obama said the plan won't help everyone, including investors and those already deep in trouble. He nodded to a potential backlash from diligent homeowners who have been making their payments, suggesting they'd benefit from stable neighborhoods with fewer vacant houses."
WOW! This truly is CHANGE WE CAN BELIEVE IN. Give me a break...
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