Finally, there may be some relief for the housing market! Obama unveiled his Homeowner Affordability and Stability plan, which he hopes will keep millions of borrowers in their homes.
This plan includes two initiatives to help struggling homeowners. One is a refinancing program for homeowners with less than 20% equity in their homes, or who owe more than their home is worth. The second attempts to lower monthly payments for those at risk of losing their home. The plan also includes a third initiative to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac.
What is different about these initiatives is that in the past, homeowners generally weren't receiving any help (loan modifications, etc.) until they were already behind on their monthly mortgage payments. These new initiatives are geared towards helping credit-worthy and responsible homeowners who are still current on their mortgages, but are struggling to stay current.
Many of the plan details are still being worked out and will be announced at a later date. But hopefully this will be a step in the right direction!