The Housing Crisis
The day after signing the $787 billion economic stimulus package, President Obama unveiled his housing plan which involves a hefty $75 billion to help prevent about nine million Americans from losing their homes. This is a sign that underscores the urgency of solving the economic crisis. The President made the announcement in Arizona, which is on of the states hardest hit by foreclosures. The housing problem is viewed by many as the source of the economic crisis. The President believes that housing crisis, the financial crisis and the broader economic crisis are interconnected and by solving the housing problem, the economy might recover.
Nearly 27% of the 52 million homeowners in the U.S. with a mortgage owe more on their mortgage than their homes are worth right now. The president’s plan is aimed at helping borrowers in that predicament, and those who are in danger of foreclosure.
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