Obama Unveils Bailout Plan to Rescue Foreclosures

In his first primetime news conference as newly-elected president, Pres. Barack Obama expressed his goal of helping the US economy recover from its current situation. His administration has an economic stimulus plan that is directed at allocating rescue funds to provide aid to homeowners facing foreclosure threats.

Foreclosures are seen to be one of the most important factors why the US is in such an ugly economic state. This is because as the number of foreclosed homes increase, the values of properties decrease rapidly and sharply, which further burdens homeowners, communities, and the whole country?s economy as a whole.

Obama said that although the whole country cannot depend solely on the government, it is at present the only stale institution that can provide help to the private sector and to individuals who are experiencing the economic crisis. The past year was a rough one for Americans, with unemployment rates going higher, and foreclosures happening in all states in alarming rates.

The government's bailout plan is said to be able to create 4 million jobs for Americans. These jobs include rebuilding bridges and creating alternative energy sources, all for the government and the country?s development as a whole.

Moreover, Obama said that the new bailout plan will have clear oversight, assuring the country that all funds and how they are managed will be reported to the public. This is after the Bush administration's bailout plan experienced criticisms and negative opinions due to its lack of transparency.

Obama likewise asked banks to be transparent, to give clear and honest reports on their current status. The government is currently under meetings and negotiations with major banking corporations such as Citigroup Inc. and Bank of America Inc. to release rescue funds for homeowners who are facing foreclosures. This move includes loan modifications and moratoriums to be granted to individuals who can later on pay their mortgages. If there will be less repo properties; the value of homes will not dip as much. This will have a positive effect on the country?s economy as a whole.

Related Posts:

• OTS Calls to Freeze Foreclosures
• Obama to Spend Nearly a Third of the Remaining Bailout Money to Reduce Foreclosures
• Obama’s Tax Plan: Hope for Foreclosure-Threatened Homeowners
• Fannie Mae, Freddie Mac Help Fund Program for Foreclosure Homes
• Second $350 Billion of TARP: For Whose Foreclosure Program?