President Barack Obama captured many hearts in America with the phrase, “Yes we can!”But just months into his presidency, people were already beginning to question him, as well as their own resolve that was built so strong during his campaign. People were starting to wonder whether he was really the man who could after all. But now, it seems Obama might have won the hearts back of many (or at least begun to convince those starting to stray,) with his new plan that will not only boost the economy, but also keep many Americans in their homes.
The financial crisis in the U.S. of course, began when the American people tied up too much wealth in their homes through their home equity. This led to little money being left for the economy, as consumer spending was drastically reduced and there didn’t seem to be any money anywhere. Slowly (very slowly,) but surely, the U.S. is picking itself up, dusting itself off, and seems to be on the road to recovery, as value increases in the American housing market. But, the President has plans to help encourage this growth even more, and to stop the foreclosure of American homes.
That plan, that has no official name and hasn’t been officially announced, will forgive $1 trillion worth of mortgage debt, through a foreclosure forgiveness program that is believed will be started and run by the Federal Housing Financial Agency. This plan will allow Americans who are currently at risk for losing their home to foreclosure to renegotiate their mortgage to come with up with a more reasonable repayment plan, and to reduce the total amount of principal owing, essentially allowing those homeowners to walk away from a major portion of their debt.
With currently 30 million homeowners in the United States facing foreclosure, this plan will certainly spell good news for homeowners currently in trouble, but it will mean that lenders will have to suffer billions in losses. The news might also be good for President Barack Obama. The plan is directly in line with the Occupy Wall Street movement, which promoted the general message of distribution of equal wealth and more specifically, demanded a plan to help American homeowners who are in trouble. And putting more money into their hands just happens to fall in line with Obama’s goals of putting money back into the economy.
What do you think of this foreclosure forgiveness plan that Obama’s rumoured to have in place? Do you think it’s an election ploy, or a legitimate way to help out American homeowners and get them, and the economy, back on their feet?
