Chairman Bernake announced the other day that the Federal Reserve will do everything necessary to protect the economy but he also went on to state that they are not going to bail out any homeowners. An estimated 2 million homeowners are at risk of losing their home due to rising payments because of an adjustable rate mortgages and declining home values. These homeowners can not sell their home because they can not sell their home for a high enough price to pay off their existing loan while their payments increase every month to a point where it is no longer affordable. They begin falling behind on their payments and the foreclosure process looms ever closer. President Busch announced a proposal to assist some of these homeowners but most experts agree that the counter measures will have little affect. Here is the link to the video of this announcement on AP VIDEO.
The President & Fed Chairman Announce a Rescue Plan for the Mortgage Crisis
September 1st, 2007 · 1 Comment