Mr. Obama's Foreclosure Plan

In “Mr. Obama’s Foreclosure Plan” the author targets the American homeowner as his intended audience. The article appears to have been written by a democrat dissatisfied with President Bush’s pro-business stance during the last eight years. The author’s position is backed by some valid points related to the funding made available in Obama’s stimulus plan. He has evidently researched this topic and is an educated editorialist.

            The main point of the article is the author’s concern that while Obama is clearly supportive of the hardships facing struggling homeowners to pay their mortgages; he is skeptical that the plan goes far enough. The author applauds the nearly $75 billion of the stimulus package that will be used as incentive payments for banks to modify the terms of mortgages for at risk home owners. He is also pleased that these estimated 4 million families will have lower home payments and be able to afford to stay in these properties. The author likes the fact that Obama’s plan puts pressure on lender’s who are not readily willing to work with delinquent homeowners, by insisting on modifications through court orders. This is in direct opposition to the previous administration’s reluctance to get involved in decisions between homeowners and lending institutions.

            However, even though Obama’s plan tends to protect the American homeowner, the recent valuation decline in real estate prices nationally has eliminated much of the equity homeowners have accumulated over the years. If some of these struggling homeowners find themselves unemployed, or with a serious illness, they not only won’t be able to pay their mortgage, they could be left with an asset that has no value. It is in those situations that bankruptcy is the only viable option left. It is here that the author believes President Obama must be strong on bankruptcy reform legislation, so that the American homeowner is protected from foreclosure. With the powerful lobby of the mortgage and banking industry, Obama faces a difficult fight to favor borrowers seeking bankruptcy protection.