Foreclosure Plans By Obama

President Obama has announced a plan to help homeowners refinance their homes. Obama has created a $75 billion program to subsidize loan modification to help family's monthly payment to as little as 31% of their monthly income. This comes in a very good time since there are millions of people who need help in keeping their homes. In the article it states that it will not save every home but will help those that are in financial ruins, help them get back on their feet. This is a tough call becuase not everyone will be saved. According to the article homeowners have to qualify for refinancing. His plan has three components which are the following:

1) The plan would help homeowners who are current on their payments, but are paying
high interest rates and cannot refinance because they do not have enough equity
in their homes

2)It would assist about four million people who are at risk of losing their homes
It would provide incentives to lenders who alter the terms of loans to make the more afforable for troubled borrowers

3) To try and increase the credit available for mortages in general by giving $200 billion of additional financing to Fannie Mae and Freddie Mac

It is understandable that you can't possibly save everyone. I guess this is the harsh reality of this crisis that we are in. I only hope that the mortage companies do the right thing for the homeowners. After all, they are the ones that created this mess and here they are getting government money once again. Let's hope that the government makes sure that these mortage companies do what's fair for the homeowners.

I can't even imagine what some homeowners are going through, but to put your whole heart and soul into your home and then to lose it comes with alot of different emotions. My heart goes out
to the millions of people who will lose their homes.
(Image from here)