400,000 homeowners to benefit from Bush’s foreclosure prevention plan

Jul 29, 2008 | Comments 12

400,000 homeowners to benefit from Bush\'s foreclosure prevention plan

President Bush is expected to sign the foreclosure prevention plan which was passed by congress on Tuesday. The plan will help around 400,000 homeowners. The homeowner rescue plan was downplayed by top a top Bush official; he argued that there were already efforts in place that would help more borrowers.

Steve Preston the Housing and Urban Development Secretary told reporters that the previous expansion of the Federal Housing Administration’s authority would benefit more borrowers: 500,000 by the end of the year. He added that “much more significant impact on Americans who need to refinance,” than the bill approved by Congress.

Preston made points to the lawmakers as to why funding wasn’t implemented into the new plan. The plan goes into effect from the 1st of October.

HUD had requested $15 million for technology upgrades and $12.5 million to implement the $3.9 billion in neighborhood grants, this funding was never received.

It’s been projected that by then end of the year nearly 2.8 million U.S households will either face foreclosure, sell their homes for less than the mortgage value or hand over their home to the lenders.
Under the new bill that Bush is set to sign, the FHA could insure $300 billion in refinanced mortgages, this would be available if as a homeowner you spend more than 31 percent of your income on your mortgage, you would have to be current on your loan as from March. To avoid costly foreclosures banks will have to agree to take a huge loss on the existing loans.

Source: Businessweek.com

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Filed Under: Mortgage News

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  • Professor_Arkham

    Why is our tax money going to help people who can’t live within their means and can’t read their loan agreements.

    I live within my means. I read my loan agreement. I don’t live in a $500,000 home; although I could have gotten a loan for that amount.

    I’m angry about this.

  • Pelkyi Dorje

    How exactly is this “Bush’s foreclosure prevention plan”? Is this website affiliated with FOX news?

  • ron duffy

    Bush’s plan??? Where in the world was
    this distorted political propaganda conceived? Sounds like a Limbaugh seed.

  • Bob

    Bush’s foreclosure prevention plan? Please. Bush could care less.

  • Richard

    Let them fend for themselves like the rest of us! Tired of bailing out the speculators!

  • Buddesatva

    Where is mine? I pay my bills. I don’t borrow money I cannot repay. Why do deadbeats get ‘relief’? This crisis was brought on by ‘just make the deal’. Real estate agents, appraisers, lenders, underwriters and the suckers are all culpable. This is outrageous. We can’t let them fail because the economy cannot sustain this type of hit. Where is my check for playing fair and being square?

  • Brian

    Wonderful! I live in a modest home within my earning income, but now I have to pay for our government to bail out someone to live in a $625k house that they could not have possibly afforded anyway? $625k… get out and live in something you can afford. No one HAS to live in a $625k house. This program (if we must have one) should pay only for a modest, liveable house they can afford…. PERIOD!

  • http://foxnews Nicole

    Bailing who out……..are you not effected by the increase in gas prices. Please, everyone at some time will need a helping hand. I say take advantage of the blessings that come your way and Thank You Bush/Congress for the help. You never know ones situation so don’t hate.

    I think every American should have a house to call home and the unexpected will happen. We should be able to go to the government in the time of need.

    Did you cash your stimulus check???? I thought so!!!! Wouldn’t that be defined as a hand out? Now who is the speculator???

  • Jennifer

    Don’t put a band-aid on the problem. It started with Clinton sent our jobs out of the country!!!!!! People don’t need to refinance they need jobs to pay their mortgage. Lets face it if your not working do you think a lower interest rate is really going to make a diffeence?

  • http://APnews Dan

    I’m surprised congress hasn’t jumped through their ass in an attempt to bail out all the loan companies and banks who have made all these redicilious loans to home buyers. Maybe all their lobbying $ wasn’t enough!

  • Blair B.

    Boy, listen to the Obama elitist wine. Not about the travesty of bailing out the speculators, but because they are not getting the credit. Guess thats all that matters to those folks.

  • Professor Arkham

    @Brian

    Yes, everyone at some point does get hit with an unexpected crisis in their life; however, this is not an unexpected crisis.

    I argue that most of the affected people created their own disasters by not living within their means or taking the time to read their contract, i.e loan agreement–and this isn’t the only issue where free handouts run rampant.

    The mortgage crisis is just the hot topic. The underlying reasons are almost always the same–sheer ignorance or even worse, laziness.