February 19, 2009

Barack Obama and a 75 Billion Dollar Foreclosure plan

President Barack Obama threw a $75 billion lifeline to millions of Americans on the brink of foreclosure Wednesday, declaring an urgent need for major action not only to save their homes but to keep the housing crisis “from wreaking even greater havoc” on the wider national economy. Support from the government is being doubled for homeowners involved with Fannie Mae and Freddie Mac as well. This effort is aimed at the overall economy as well as the foreclosure crisis and is critical to recovery. Obama has signed a 787 billion dollar recovery bill in Denver to stimulate the economy and plans on carefully overlooking automaker bailout plans. The administration is lessening refinancing restrictions for many borrowers and providing incentives for lenders in hopes that the two sides will work together to modify loans.  Investors in mortgage linked securities make the situation more complex because their approval is often needed to prevent foreclosures. They make money off of the interest in mortgage loans. The plan is not aimed at saving all homes, but will certainly help the dreary foreclosure situation for many homeowners.

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