What is the best way to help homeowners in crisis?
What is the best way to help homeowners in trouble?
As of now, there are at least six major plans in the works to help homeowners -- with more in the works.

Former treasury secretary, Hank Paulson, and his staff proposed driving down mortgage rates to as low as 4.25%, in hopes of getting buyers back into the market. The Bush White House supported Paulson’s plan.
 
At odds with Paulson’s plan is Sheila C. Bair’s, chairwoman of the Federal Deposit Insurance Corporation. Her plan would offer a guarantee to lenders who agree to modify their existing loans to cut mortgage payments to 31% of a homeowner’s gross income.  If lenders cut interest rates or extend the life of the loan, the Government would cover part of their losses should a homeowner default.
 
These two plans and the other competing plans have led to deep disagreements that may not be resolved until president-elect Obama takes office. What is very clear is that a stronger policy response is desperately needed.
 
And help needs to arrive quickly. What we have now are ineffective programs, unable to stem the tide of foreclosures that are estimated to affect 10 million homeowners over the next five years.
 
Our Help For Homeowners guide clearly explains each competing plan, along with any new plans, so that homeowners in distress can make informed decisions. We will also be creating and maintaining a list of helpful resources that will include organizations, faith-based groups and charities helping homeowners in crisis. In addition, we will be keeping a list of scams that have been targeting vulnerable homeowners.
 
Please note that we will actively update this resource. Visit it frequently as new information will be added on a daily basis
 
If you have a suggestion, know of a web site or have a comment on how we can make our guide more complete, please drop us a line at support [at] housing [dot] com
 (Image Source: Tehran Times)