President Obama and his team want to use a fair amount of the stimulus plan
to bailout homeowners and assist the foreclosure crisis going on right now.
They expect to set aside between $50 and $100 billion for the cause.
Tuesday is the day planned for the revelation of the remaining $350 billion
of the package. Treasury Secretary Timothy Geithner will be the one to
announce the plans, however, it remains unknown whether or not he will
present a detailed plan for taking care of the foreclosure issue.
Some of the intents of the financial team include reducing mortgage paying
and restructuring bankruptcy laws.
Unemployment has proved to be one of the major reasons behind foreclosures.
And with that, many are hoping that Obama’s stimulus plan works so that they
can get jobs and get their lives back on track.
It is likely the stimulus package will include, to create a surge in the
buying of homes, a $15,000 tax credit to new homebuyers.
In addition, the Hope for Homeowners program is also going to be facing a
redesign to make its setup more appealing and affordable.
The Bush administration also had to deal with foreclosure issues, but
failed. With a new foreclosure starting every 13 seconds, (Center for
Responsible Lending) the questions now is, can the Obama administration fix
the ongoing issue.