By Joseph Smith
 There are millions who would still go into foreclosure even after the launching of President Obama's Homeowner Affordability and Stability Initiative. Homeowners whose loans are more than $729,750 and who have lost properties to tax foreclosures are not qualified under the program.
Based on J.P. Morgans data, about one-fifth of the nation's 50 million borrowers have mortgage loans more than 5 percent higher than the current value of their homes. They would not qualify under the loan refinancing plan of Fannie Mae and Freddie Mac.
Similarly, Christopher Viale, head of the nonprofit Cambridge Credit Counseling Corp., said there are about 10 million families that would not get any help from the Obama program. He said these families are not in default because they are charging their credit cards.
What is troubling is that these unqualified homeowners would be paying credit card debts forever because they are only paying the minimum monthly payments. Families that are in danger of tax foreclosures are also left out of the program, possibly because of the relatively lower number of tax foreclosures in comparison |
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