Will it work??? Quite possibly...

It would seem on it's face that this is a positive thing for the majority of Americans that are facing foreclosure due to acceptable reasons. If you bought a home well beyond your means and can't afford it, don't look for any help from the Obama Administration. Sounds fair to me...conversely, if you've been laid off and have a prior history of being a responsible borrower, there is a possibility that you can qualify for one of the scenario's provided. One major thing to be aware of, if you are not in a position currently (back to work, out of the hospital, etc.) to afford a new plan now, there isn't much that can be done. Let's face it, if you can't afford it, you can't afford it. So, if you do qualify what next? That remains to be seen until the plan rolls out in 2 weeks but here are some possibilities. The lender could make numerous arrangements with you so you can stay in your home. These include lowering your current interest rate, working together with the adminstration to lower your principle balance or stretching the term of your loan to make it more affordable. The idea behind the lowering of the principle balance is to reduse your debt to 31% and make your mortgage much more affordable. The costs involved will apparantly be shared by government funds and the lending initutions themselves.
If a lender is not willing to go by the rules set by the administration, they will not be allowed to participate.. The Obama Aministration will also be working with Fannie and Freddie to offer lower interest rates for people who want to purchase new homes and this is critical in my opinion. Getting the housing market moving again is absolutely necessary. Although the price for these programs is $25 billion higher than expected, Presidant Obama suggests that it's necessary to ensure the plan is succesful.



"This plan will not save every home," he said. "But it will give millions of families resigned to financial ruin a chance to rebuild."


Obama said the goal is to target families who are "underwater or close to it" and help those who "played by the rules and acted responsibly."



It seems the President has a true grasp on what needs to be done...as always, time will tell. I'll keep you updated as I find out information and as always, don't hestitate to contact me with specific concerns or questions. Thanks for your time and have a great day!!!