Wednesday, March 4, 2009
housing crisis bailout
President Obama unveiled his plan to bail out those that are struggling with their mortgages. I am happy that part of the plan includes lowering the percentage of your total income that lenders can ask you for your monthly payments. However, it is important to have a component of the plan be for payments to be spread out over many years as home ownership is usually a long term investment. However, this needs to be a step by step process and right now the priority is the short term plan so that people can stay in their houses. There are also will be many that will call for a forbearance plan for those that are out of work at this time (just like with student loans) but opponents may not like this as it does not inject much needed cash flow back into Fannie, Freddie, and other private mortgage brokers.