housing Plan

In the article I read on the plan to help with the housing crises Obama’s purposes a 275 billion dollar budget to help families keep their homes out of foreclosure and those who are already in foreclosure reduce their monthly mortgage payments. Away from persuading lenders with government money, the plan also calls on Congress to give bankruptcy judges the authority to change the conditions of mortgages and reduce the monthly payments.
In presidents Obama’s plan mortgage lenders would have to except their losses in order to and be able to reduce the borrower’s monthly payment to thirty-eight percent of their monthly income. This made republican lawmakers a little apprehensive. To motivate these lenders the government has offered incentives for every loan that is modified, and if the borrower stays current the lender will receive more payments from the government.
Although president Obama’s plan sounds great to some, but for those who were trying to avoid to make a down payment or to reduce the down payment by taking out a second mortgage have been excluded from Obama’s plan causing a big limitation on the rescue portion of his plan. The plan would only apply to those with fairly traditional loans that are owned or guaranteed by Fannie Mae and Freddie Mac estimated at thirty million homeowners. The administrating officials think that this portion of the plan could help four to five million homeowners. The hopeful outcome is to step up purchases of mortgage and mortgage backed securities.
I think that this plan opens a great deal of opportunity for a lot of homeowners, who are struggling to keep a roof over their heads. As for those who have had to take out a second mortgage and are excluded from this plan, should get the same opportunity, as long as they have played by he rules and have made monthly payments on time. If not I’m not sure that thing are going to change as much as they are expected to over the next couple of years.