Home foreclosure help: how will plan work
Originally reported on Chicago Tribune
President Barack Obama unveiled a $75 billion federal plan to ease the epidemic of home foreclosures on Wednesday, casting it as not just a bailout for as many as 9 million homeowners but a means for ending the downward spiral of the economy. Here’s what’s in Obama’s plan for you:
Q: Who will benefit from this plan?
A: The plan is designed to help two kinds of homeowners. The first are homeowners who took out prudent mortgages with a substantial downpayment but whose home value has declined so much that they have little or no equity left. The second group are those who are struggling to make their payments – perhaps because of a job loss or perhaps because of an ARM reset – but who have enough income to continue to make mortgage payments that amount to 31 percent of their income.