Foreclosure prevention is in the forefront of President Barack Obama’s housing recovery plan, details of which is expected be released as part of the administration’s efforts to boost the economy through increase government spending to bring more jobs, financial bailout and helping homeowners pay their loans to avoid foreclosures.
According to David Axelrod, senior adviser to the Obama administration, the country is facing an economic emergency and there is a need to move forward immediately to address several issues.
He reiterated the Obama Administration’s intention to address some of the country’s major problems, including foreclosures, declining home market values and difficulty of people to pay their mortgage loans.
Initial details of the housing recovery plan include over $50 billion funding to reduce mortgage loan payments and prevent the increase in the number of distressed properties.
The housing recovery plan was announced after the Congress approved the $787 billion economic stimulus bill that is expected to save or create jobs for 3.5 million people.
Meanwhile, in an interview with Bloomberg Television, National Economic Council director Lawrence Summer said the Obama Administration is prepared to tackle the problem of foreclosure by addressing housing affordability and payments.
While the White House is giving its assurance that the foreclosure crisis will soon be addressed, it is also cautioning people not to expect an immediate turnaround result from the economic stimulus program.
Axelrod made this point at the “Meet the Press” NBC show, when he said that efforts to revive the economy will not result in an overnight turnaround.
Furthermore, Press Secretary Robert Gibbs warned against being impatient as there is a possibility that things could worsen before any improvement could be seen.
On the other hand, the economic stimulus bill includes pay and bonus cap for executives whose companies are recipients of government aid. The bill received only three Republican votes in the Senate. Meanwhile, no Republican voted for the economic stimulus bill and seven Democrats also voted against it.
Explaining why he voted against the economic stimulus bill, Senator Lindsey Graham said that the plan does not create jobs but more governments.
Obama is expected to release details of the foreclosure prevention plan in Phoenix, Arizona, one of his stops in his road trip to gather support for his economic stimulus bill.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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