President Barack Obama on Feb. 18 announced a plan to stabilize the faltering housing market by allowing up to 9 million families to refinance or restructure at-risk mortgages through a $75 billion “homeowner stability initiative” and other incentives to keep homes out of foreclosure.
Obama is selling the plan—already being dubbed a “backyard bailout”— by stressing that foreclosures have a huge impact on entire communities and reduce the price of all homes.
How It Works
According to a fact sheet distributed by the White House, the plan, which Obama outlined in a speech in Mesa, Ariz., has three main components:
• Allowing up to 5 million homeowners who have seen the value of their homes decline to refinance mortgages through the government-sponsored mortgage entities Fannie Mae or Freddie Mac
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