Wednesday, February 18, 2009

Obama to bailout 9 million homeowners

Under President Barack Obama's sensible, but long-awaited homeowner relief plan, you won't have to wait until you are delinquent on your mortgage to get help.

by Broderick Perkins
© 2008 DeadlineNews.Com
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Deadline Newsroom - Under President Barack Obama's homeowner relief plan, you won't have to wait until you are delinquent on your mortgage to get help.

Get to the White House to learn all the details about Obama's bailout of homeowners.

In a stark departure from the Bush administration, which relied mainly on having servicers voluntarily modify troubled mortgages, Obama's plan will make it easier for homeowners to afford their monthly payments by refinancing or through mortgage modifications.

The president is broadening the scope of government help by focusing on homeowners who are still current in their payments but at risk of default.

His plan will also put billions of federal funds into enticing servicers to modify the loans of those who've already stopped paying.

The housing plan President Obama unveiled Feb. 18 could directly help up to 9 million people -- but indirectly, it will help the economy in general.

"In the end, all of us are paying a price for this home mortgage crisis. And all of us
will pay an even steeper price if we allow this crisis to continue to deepen. But if we
act boldly and swiftly to arrest this downward spiral, every American will benefit."

His Homeowner Affordability and Stability Plan has four key elements:

Refinancing help for four to five million homeowners who receive their mortgages through Fannie Mae or Freddie Mac.

New incentives for lenders to modify the terms of sub-prime loans at risk of default and foreclosure.

Steps to keep mortgage rates low for millions of middle class families looking to secure new mortgages.

Additional reforms designed to help families stay in their homes.

"The plan I’m announcing focuses on rescuing families who have played by the rules and acted responsibly," the President said, "by refinancing loans for millions of families in traditional mortgages who are underwater or close to it; by modifying loans for families stuck in sub-prime mortgages they can’t afford as a result of skyrocketing interest rates or personal misfortune; and by taking broader steps to keep mortgage rates low so that families can secure loans with affordable monthly payments."

Get more details here: Homeowner Affordability and Stability Plan

Read CNN's take on: Homeowner Affordability and Stability Plan

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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group -- DeadlineNews.Com, a real estate news and consulting service and Web site and the Deadline Newsroom, DeadlineNews.Com's news back shop. Perkins is also a National Real Estate Examiner. All the news that really hits home from three locations -- that's location, location, location!

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