Obama to share mortgage payment plan
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Steve Chiotakis: After focusing on a stimulus package and automakers, President Obama
turns his bully pulpit to homeowners today. He’s set to lay out a plan to reduce mortgage payment to help those who are struggling. He chose Phoenix for his announcement, because foreclosure rates there are sky-high. Rene Gutel reports.
Rene Gutel: Phoenix home prices have dropped a third over the last year. Many families are stuck with homes that are worth less than the mortgage they hold. Some are even resorting to using their credit cards to pay the mortgage.
Many struggling homeowners hope President Obama’s plan will help reduce their monthly payments. But there are skeptics — people like Anthony Sanders, a finance professor at Arizona State University.
Anthony Sanders: If one foreclosure requires $150,000 to avoid, multiply that by the numbers of subprime loans, we’re talking about a gigantic price tag. So it’s a tough nut for Obama to try to crack.
Obama will take a crack at that tough nut when he takes the stage at Dobson High School in Mesa.
In Phoenix, I’m Rene Gutel for Marketplace.
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