Wednesday, February 18

$50 Billion Needed for Housing Market

According to, these are a few of the provisions that will be announced in President Obama's proposal to bail out the housing market.

  • The price tag is $50 billion -- from the TARP funds -- plus more on top of that from other programs.
  • Government subsidies for lenders to modify loans to homeowners who are struggling to make payments. The government would subsidize the difference.
  • A program through Fannie Mae and Freddie Mac for homeowners to refinance their mortgages if they owe more than their homes are worth.
  • An effort to make loans more affordable through various means -- extending loans, lowering interest rates, and other ways.
The president will announce the plan from Arizona today unemployment in the state was 6.9 percent in December 2008, and Arizona recorded 117,000 foreclosures in 2008, the third highest number in the U.S.



Melissa said...

This housing market plan is almost as scary as the stimulus bill....let's take all the people who love to get "something for nothing" and tell them if they can't pay their mortgage the government will pay it for them. I guess it just depends on what your definition of "struggling to make payments" is. New car or mortgage? Hmmmm.....maybe the government will buy me the car as an incentive if I actually make my mortgage payment. That can kill two birds with one stone and keep the automakers in business, too! Now, that's a plan!

There are certainly people out there who need some help, but there are also a lot of foreclosures past, present and future that are major scams. And, I'll never forget the interview with the lady who was overjoyed when President Obama won the election because now she "would not have to pay her mortgage".

happyathome said...

Something for is like a plague that won't go away! You would have thought we learned from our mistakes with Fannie Mae and Freddie Mac, I guess not.


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