President Obama is expected to release his homeowner foreclosure prevention plan soon. This plan is designed to help to reduce inventory of homes on the market by reducing foreclosures that will then be for sale, but it will also be another expensive project that will likely be abused by many people who want to take advantage of any free government money.
Many fear that people will literally stop paying their mortgages if they feel the the government will step in, lower the amounts due, and make payments for them.
Experts are especially worried about this problem in areas like California and Arizona where most homeowners owe more on their properties than they are currently worth. Why should the government bail out someone who wasn't as responsible as someone who is?
Will this really happen?
Will the $50 billion in future taxpayer dollars do more good for the health of the overall housing economy, or will it do more harm?