President Obama announced a $75 billion dollar mortgage relief plan intended to keep struggling homeowners in their homes and slow down the current housing crisis. The plan aims to help as many as 9 million homeowners by allowing them to refinance at a lower, more affordable interest rate.

For a Q & A on how the new plan called the Housing Affordability and Sustainability Plan will work, visit my site.

“In the end, all of us are paying a price for this home mortgage crisis,” he said. “And all of us will pay an even steeper price if we allow this crisis to continue to deepen, a crisis which is unraveling homeownership, the middle class, and the American Dream itself.”

Moody’s Economy.com says nearly 27 percent of America’s 52 million homeowners with a home loan owe more on their mortgages than their homes are worth. The president’s plan is aimed at helping borrowers in that predicament, and those who are in danger of foreclosure.

“But it will give millions of families resigned to financial ruin a chance to rebuild. It will prevent the worst consequences of this crisis from wreaking even greater havoc on the economy,” the report said. “And by bringing down the foreclosure rate, it will help to shore up housing prices for everyone.”

blog by elephant’s realtor – Liz Benson