Economic Crisis

As we all know we are going through an economic crisis. The unemployment rate has sky rocketed. Hard working citizens are loosing their source of income, and not being able to provide for them selves and their family. Due to that it's resulting in people falling behind on their mortgage payments which lead to foreclosure. On a better note the U.S government has established the Homeowner Affordability Plan $75 billion dollars that will aid homeowners. "The plan will help as many as 7 million to 9 million families refinance or restructure their mortgage." The author of this article is right to a certain extent it will help many families but not all. For most mortgage companies in order to refinance you have to be current on your payments. I actually work for a mortgage company so I familiar with this plan. I have the opportunity see what really goes on behind the scenes. "Those at risk of loosing their homes to foreclosure can convert their mortgages into affordable ones...and the ability to stay in their homes." When the reality is the majority are losing their homes due to foreclosure. The plan will not assist homeowners who purchased homes they could not afford for the term of their mortgage in the first place. Not everyone has a loan with Freddie Mac or Fannie Mae whom are the only two investor’s participating in this plan. The author makes some valid statements but he fails to mention the reality of the situation.