Not a Panacea for All the Borrowers
May 8th, 2009
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The Obama’s plan is not a panacea and it would not prevent all foreclosures. There are families, whose debt is so high that even with this modification, there is no way to help them out with this plan. Also, it doesn’t address the problem of borrowers with second mortgages, such as home equity lines of credit. Any modification or refinancing would apply only to the primary mortgage.
The truth is that the number of people who are “underwater” on their mortgages has risen to about 15 million recently, while the president’s initiative aims to help only 7 to 9 million.