Millions of homeowners will not qualify for President Barack Obama’s Homeowner Affordability and Stability Plan

Millions of homeowners will not qualify for President Barack Obama’s Homeowner Affordability and Stability Plan. There are certain restrictions in the housing plan that will exclude those who meet them. Homeowners with jumbo mortgages, which refer to loans over $417,000, are not eligible. Loan borrowers whose mortgage loan balances are five percent more than their present home values would also not be eligible. It is also known among housing advocates and nonprofit associations that mortgage lenders refuse to work out loan modifications for distressed homeowners in areas hard hit by foreclosures. Obama’s proposal to give bankruptcy judges the power to modify loans to lessen monthly payments by Congress, could nudge banks to do some loan modifications. But this proposal is being opposed intensely by the mortgage industry and some groups of legislators. Borrowers also need clean credit, a stable income, and the loan can’t be above 105 percent of the property value. Bush’s similar plan only saved 30 homes, way under their projections. Obama is being accused of using hard working taxpayer dollars to try to bail out ignorant borrowers to simply borrowed too much and were irresponsible.