Fighting Foreclosure
Obama wants the government to step in to help homeowners facing foreclosure. McCain unveiled rescue plan in October debate.
· Buy bad mortgages and renegotiate loan terms based on current value of home. Convert failing mortgages into low-interest, FHA-insured loans.· Offer of financial assistance to borrowers contingent upon lending reform.
· Provide more funding for community development groups so they can expand their home rescue efforts.
"The United States government will support the refinancing of distressed mortgages for homeowners and replace them with manageable mortgages." -- McCain*
· Allow troubled homeowners to refinance to a loan insured by the Federal Housing Administration.· Require any financial institution participating in Treasury's Troubled Asset Relief Program to put a 90-day moratorium on foreclosures for homeowners "acting in good faith."
· Create a 10% tax credit for homeowners who do not itemize their taxes.
· Create a $10 billion fund to help victims of predatory loans.
· Create a separate $10 billion fund to help state and local governments maintain critical infrastructure.
· Authorize bankruptcy judges to reduce mortgage principal.
"...If the government can bail out investment banks on Wall Street, then we can extend a hand to folks who are struggling on Main Street." -- Obama**
NEXT: Mortgage Giant Rescue
Last updated October 29 2008: 12:15 PM ET
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*October 10, 2008, Speech, La Crosse, WI
**June 9, 2008, Speech, Raleigh, N.C.
*October 10, 2008, Speech, La Crosse, WI
**June 9, 2008, Speech, Raleigh, N.C.
