Understanding the Housing Recovery Plan
The recently announced Homeowner Affordability and Stability Plan is a sweeping effort to stem the national tide of foreclosures and to help as many as 9 million homeowners stay current on their mortgages. Here's a look at what the plan will entail and who will be eligible for assistance.
Basics of the Plan
The nationwide foreclosure problem has caused a ripple effect of lowering home values throughout individual communities. The Obama administration's plan marks the largest government response since the beginning of the housing crisis. At its core are three main strategies:
- Secure refinancing for as many as four million responsible homeowners, with the goal of making monthly payments more affordable
- A $75 billion stability initiative to encourage lenders to modify loan terms for three to four million mortgages at risk of foreclosure or already in foreclosure.
- Additional financial support for Fannie Mae and Freddie Mac.