President Obama Wednesday unveiled a $75 billion plan to shore-up the housing market.
The plan aims to help nine million families keep their homes.
People who owe more than their homes are worth will be able to refinance.
While the plan should lower mortgage payments, the president warns it will not save every home.
Molly Secours lives in east Nashville and is self-employed. She’s caught in the middle of the housing melt-down.
When Secours bought her house, she secured a subprime mortgage loan with a carefully laid out plan to earn stellar credit and refinance with a different bank.
Things didn’t go according to that plan.
Secours was diagnosed for uterine cancer and out of work for 11 months for chemotherapy and radiation.
Now, with a mortgage rate of 9.8%, she is on the verge of losing her home.
“I go into foreclosure on March 2 unless I take this deal, which is almost higher than what I have,” Secours said. “It’s devastating, it’s demoralizing. People aren’t going to put themselves in this situation on purpose.”
President Obama’s plan to help the housing market may help those facing foreclosure stay in their homes.
Some question the “fairness” of his plan.
“Is it fair that I pay my bills and my neighbor who doesn’t, we’re equal and they get the same opportunity to refinance as I do?” asked Andy Voyles, with Elite Mortgage Services. “I don’t think its fair, but the goal is to keep people in their homes.”
“I don’t understand why people, who are in a good position aren’t supportive of helping those who aren’t. When you support your community, you help everyone,” said Secours.
Brian Short is the executive director of the Tennessee Association of Mortgage Brokers.
He said neighbors should be supportive of keeping their neighbors in their homes.
“That’s good for you as a neighbor,” Short told News 2. “You don’t want to see the value of your home go down.”
Secours doesn’t know if she’ll be helped by Obama’s plan but said she’s not losing her home without a fight.
“There’s embarrassment and shame surrounding this, and there shouldn’t be. What’s shameful is taking advantage of people in hard times. That’s shameful,” she said.
The Tennessee Association of Mortgage Brokers said they’re still waiting on the details of Obama’s housing plan.
That plan will dictate how they can help their clients who are upside down in their homes.