Reactions for Obama’s Foreclosure Plan

Posted on April 30th, 2009 by saman

The housing secretary and the white house spokesman spoke on Friday as a reaction to the President’s announcement on foreclosure plans. He said that some people make ‘bad decisions’ which may end up to seek help for the same. Donovan, the secretary of the President told the CNN channel that ‘there are no flippers’, ’investors-owners or scammers’ eligible for this program. He also added that they are going to check the income of the individuals when they join this program. There are also plans to ensure that the people pay bills regularly and target those who stick on to the rules. The proposal made by the administration will definitely make it easier for the house owners to afford the monthly payments made by them by either restructuring the mortgage design plan or making the loan plan itself modified. This would widen the scope of the administration to focus on the house owners who are lagging behind in their payments as defaulters.

Sanford commented the plan as a ‘horrible idea’. According to Sanford, almost all the people who are struggling by the cruel results of mortgage are already following the rules. But they are either paying or losing their money still. According to him the government’s giant agencies Fannie Mae and Freddie Mac are themselves on unstable financial status. They are expected to report huge losses in billions in the course of a week or two. On the whole Sanford never said that he accepts the federal stimulus money, rather he kept on arguing against the package throughout his entire conversation.

At this moment, Donovan put forth the status during December when the sellers as well as the householders were totally depressed by the foreclosure issues. The bank had already seized their properties and drove the prices down than the original value of the house. He added to the CNN channel that they are just planning to save every American from foreclosure and get rid of it soon for a healthy economy in the country. The president has already said that all these schemes are brought up by keeping that community of people who are suffering from foreclosure, the people who earn and own a house or property. Anyways this is not going to affect or help the unemployed as they already don’t have enough money to balance their life.

On the final comment by Sanford, he said that all the money that are to be used for funding is anyways going to be collected or borrowed from the future generation. He also added that this plan as a whole sounds as though we are digging a hole for ourselves on an already shaky ground. This plan is going to spend more money rather than saving.