If you turn on the television or pick up a newspaper you will hear about this stimulus package, that prevention plan, a billion dollars for this, and a potential deficit that has risen above the trillion dollar mark. Is it good, bad, or neither?
As a homeowner in the US, and more specifically here in North Orange County, what does all of this mean for YOU?
Details for President Obama's Foreclosure Prevention Plan are said to be released on March 4th, 2009. Until that day comes, I wanted to share with you some of the answers that the LA Times provided this week in their Q & A article "How the Obama plan will affect Homeowners."
Who is it for?
The worry is that the plan will reward those who made poor decisions when applying for a mortgage and do nothing for those homeowners who have remained current on their payments despite the fact that they owe more than their home is worth due to the declining market. The plan states "the loan modification plan will exclude speculators and borrowers with high debts."
How is it going to help?
A Washington Post article said: "The three key elements of the proposal include a program that would allow 4 million to 5 million homeowners with little equity in their homes to refinance into cheaper mortgages; a $75 billion program to keep 3 million to 4 million homeowners out of foreclosure; and a doubling of the government's commitment to Fannie Mae and Freddie Mac to $400 billion."
Check out the article for more details on questions regarding the plan and bankruptcy, those who are already in foreclosure and what the $75 Billion Dollar plan will affect taxpayers.
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