Real estate rescue plan. Do you think it will work?

Arthur, I certainly hope so, but I am not going to hold my breath. If this does not work, we are certainly looking at a huge bill to pay...

Your building consultant in the Spring Hill area of Middle TN - Michael

Obama's plan is to have FannieMae and FreddieMac refinance owner occupied homes at 80 ltv and 31% debt to income.  The government would pick up the rest of the amount owed, wether the mortgagee is upside down or not.  If the banks do not want to follow these guidelines they will not be able to receive future Tarp money.  As for  80/20 and SIVA loans there is no place in this market for these loans.  It is time for qualified buyers.

Hi Arthur, lots of good questions are asked here.  Unfortunately (fortunately??), I don't do loans so I'm not as savvy about the ramifications of the new plan as others may be.  Based on what I've read in the Treasury Department's fact sheet, there are plenty of things to like about the new Homeowner Affordability and Stabilization Plan.  To see it for yourself, which just might bring about more questions than answers, check out the fact sheet and summary at www.treas.gov/press/releases/tg33.htm.  Regarding loan modifications, however, we won't know much about that until March 4 when the Treasury unveils the modfication guidelines.  For now, however, it appears that servicers may particpate in the loan modification program, but will be given only $500 per loan for their efforts.  Again, I'm only about 1/2 of the way through the fact sheet, so I apologize if I'm quoting it incorrectly or incompletely. 

Arthur, I look at it as 90 per cent of the people that got loans were hardworking good people it is the 10 % or less we are focusing on. I believe that all this will do is slow the recovery. Look at the Auto Industry they are back asking a few more Billions. How about helping out the poor Realtors.:)

I don't think it will be all roses for good responsible borrowers. 

They are not the target consumers.