I guess the effectiveness of this will all depend on the details. Will they FINALLY be announced in specificity today?? Something that sprang out at me as confusing….one class of eligibles will be those who lost their job. And so their mortgage gets reduced to 31% of gross income. Does this mean 31% of unemployment compensation? Their previous salary? Someone’s guess?? Same sort of confusion about someone eligible because of a cut in pay. What if this is just temporary? Do the payments reset back to the higher level after they go back to fulltime?
It does appear that the $1000 gift to borrowers who actually make their mortgage payments has disappeared from the plan. Let’s at least be thankful about that and also cheer the intent of the plan, which is to stabilize the housing market and allow the market processes to adjust housing supply and demand in an orderly way.
Obama Rescue Plan Said to Be Limited to Homeowners Most in Need By Dawn KopeckiPosted March 4, 2009 by Nathan Gendelman
