Obama’s $275 billion plan — announced on Wednesday — doesn’t compel banks and other lenders to modify troubled mortgages. Instead, it provides a menu of incentives that may or may not prove sufficient in reaching the goal of helping 9 million homeowners.
Unlike in the past, this plan only encourages banks to participate, instead of forcing them to. The other good part about the plan is once the entire mortgage debacle stops spiraling out of control it will stabablize home prices and help all homeowners who have equity in their homes. This just isn’t about helping people who are facing forclosure, it is also about helping all homeowners save the equity in their biggest investment. Makes sense to me. I try not to take what Cantor and Boehner have to say to seriously.