Wednesday, February 18, 2009
Obama's Mortgage Bailout Plan Topic On Paltalk
President Obama traveled to Arizona today, where there is an extreme housing crisis, to outline his $75 billion mortgage bailout plan. Designed to get Americans out from under upside down mortgages and to get the real estate market, whose downturn stalled the rest of the economy, back on track. The administration hopes to help up to 9 million mortgage holders with the plan.
In remarks prepared for today's announcement, Obama lamented that the American Dream is being "tested by a home mortgage crisis that not only threatens the stability of our economy but also the stability of families and neighborhoods."
Homeowners who are faced with an inability to pay their mortgages, the president says, are stuck, because they can't sell their homes and downsize to one more affordable.
"You can't afford to leave and you can't afford to stay," he said, stating the obvious.
Obama chose Arizona to announce his plan because there are some 150,000 foreclosures in the Grand Canyon state.
One of the most innovative aspects of the plan is an incentive to mortgage servicers - the middlemen and women between the borrower and the financial institution. They would be given a bounty of $1,000 for each mortgage modification. If the borrower makes all of his or her payments, the servicers would get an additional $1,000 for the first three years of the mortgage.
That alone is enough to make many unemployed or underemployed Americans start thinking about getting into the mortgage servicing business.
The plan also calls for a change to the bankruptcy laws. Giving bankruptcy judges the option to modify mortgages.
And it offers money to help those who are falling behind in their payments to catch up.
We'll discuss the president's plan at 5 PM New York time today on News Talk Online on Paltalk.com. To join in the conversation CLICK HERE.
Paltalk is the largest multimedia interactive program on the Internet with more than 4 million unique users.
News Talk Online is also syndicated by CRN Digital Talk Radio to an additional 12 million households.
Photo credit: http://www.flickr.com/photos/respres/2539334956/