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The President & Fed Chairman Announce a Rescue Plan for the Mortgage Crisis

September 1st, 2007 · 1 Comment

buschChairman 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.

Tags: Mortgages

1 response so far ↓

  • 1 Judy // Oct 1, 2007 at 12:45 pm

    This is the biggest joke since the subprime crisis started. People who are facing foreclosure or are in foreclosure right now can’t borrow money, their credit scores are not good at all.

    The president may have extended this Olive Branch but it will do nothing for the people truly affected by this crisis.

    We short saled our home and are renting it back from the owners. We have until March 2009 to buy it back. It’s damn near impossible to fix your credit yourself although I have been trying. We’re screwed, only now we have nothing to show for it.