From MHN Online:
“President Obama’s newly unveiled $75 billion Housing Affordability and Stability Plan, which is aimed at avoiding foreclosures, may be the much needed relief for many individuals on the brink of losing their homes. While it was praised by some housing groups, others said the plan isn’t the best course of action the economy needs right now.”
The Obama plan doesn’t help renters who were aware that they couldn’t afford to buy a home or people who didn’t overextend themselves to purchase a home they couldn’t afford, or people who bought a home and are struggling to keep up on their mortgage payments to avoid foreclosure. The plan is targeted at a very targeted group of individuals while ignoring the vast number of people who were responsible or at least are doing what they can to keep up with their payments.
I agree that it is wrong for renters to bear the burden for the missteps of lenders and speculative housing owners. Just ask everyone living at Peter Cooper / Stuyvesant town. At the end of the day everything Obama, or any politician does is for the purpose of securing votes and there are a lot more people renting that would appreciate a little security.
It is still to be seen what the impact of TALF will be but is should help these owners avoid foreclosure through either selling or refinancing.