Obama's Fopreclosure Plan

[spearmint]

http://www.treas.gov/initiatives/ees...ampleSheet.pdf

At the above link, example C, it says the interest rate will be lowered for five years and then phased upwards. Why would it be raised at the end of five years? I thought the idea was to give fixed rates to people.

[HHM]

Note, exhibit C is for sub prime. I think the Obama Admin, after they got in and saw the numbers, realized they really could afford to substantially bail out sub prime borrowers.

Again, this program is "probably" doomed to failure. The only major difference between this program and earlier programs is the Obama admin is going to incentivize banks to make this deal by covering their loss. But they aren't fundamentally altering anything. And as those examples illustrate, very few people would even qualify. If you look at exhibit's A and B in that link, it talks about a family having originally put 20% + down...NO ONE has done that since the 1990's

[Overmylimit]

Why is it all the scenarios show the home being worth more than the loan?? If this was really the case for a lot of people they would just sell the home instead of walking away and leaving their mortgage. Washington needs to come down to reality

[myhearts07]

How will this plan work for families who are already in foreclosure or going into foreclosure, have a subprime loan, put down less than 5% and are filing BK? I had heard that there will be no assistance for those families. Is that true?