Obama Unveils $75 Billion Foreclosure Prevention Plan

In many ways, the Phoenix metropolitan area is ground zero for the nation's housing crisis. Home prices has plummeted nearly 40% in the past couple years, and approximately 60% of homes bought in the last five years are worth less than their mortgaged amount. More than six percent of all Phoenix homes have received a foreclosure filing in the past 12 months. Unemployment has risen, making it even more difficult to find buyers in this depressed housing market.

President Obama today used the Phoenix market as a backdrop to unveil a $75 billion plan to help home borrowers affected by declining home values and an increasingly inability to keep up with monthly mortgage payments.

Dubbed the Homeowner Affordability and Stability Plan, the President's plan will offer:

1. refinancing help for four to five million homeowners who receive their mortgages through Fannie Mae or Freddie Mac
2. new incentives for lenders to modify the terms of sub-prime loans at risk of default and foreclosure
3. steps to keep mortgage rates low for millions of middle class families looking to secure new mortgages
4. additional reforms designed to help families stay in their homes

Details of the plan are still coming out. The White House is doing a good job keeping the public informed though this informative blog that contains documents to help Americans understand the plan and how it can help affected home owners.

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