What Will Keep 9 Million People from Losing Their Homes?
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President Obama unveiled his $75 billion Homeowner Stability Initiative today, which could be a start to ending the foreclosure crisis that plagued 2.3 million Americans last year. While Obama acknowledged his plan won’t be able to save every home, he claimed it would stop “the worst consequences of this crisis from wreaking even greater havoc on the economy.”
To that end, Obama’s plan will help those homeowners facing mortgages more costly than the price of their homes, along with borrowers on the verge of foreclosure. That would be key to enabling 4-5 million Americans currently “under water” refinance their mortgages, and another 4 million people avoid foreclosure. The plan also “will provide forward-looking confidence” for Fannie Mae and Freddie Mac, as Treasury Secretary Timothy Geithner said.
But the question still remains how soon this money will get to the people who need it most, considering 10,000 Americans go into foreclosure every day. As Arianna Huffington recently put it, “‘The banks are too big to fail’ has been the mantra we’ve been hearing since September. But when you consider the millions of American homeowners facing foreclosure, aren’t they also too big to be allowed to fail?”
ZP Heller is the editorial director of Brave New Films. He has written for The American Prospect, AlterNet, The Philadelphia Inquirer, and The Huffington Post, covering everything from politics to pop culture.