45,000 Homeowners Request Aid
The soup kitchen line keeps growing as more and more homeowners seek government aid for loans they can’t afford.
MarketWatch has the latest:
In a speech in New York, Paulson said the Treasury-backed plan to prevent subprime foreclosures has now been joined by firms representing 90% of the subprime market. Within a few weeks, the industry will begin “fast-tracking” some qualified borrowers into new, affordable loans, Paulson said.
The effort could be extended to other adjustable-rate loans, not just subprime loans, Paulson suggested.
“A housing correction was inevitable and necessary,” Paulson said.
In brief remarks on the economy, Paulson said he expected it to “continue to grow.”
“Our economy remains resilient,” he said.
Why thousands of people requesting government aid is a sign that the housing market is in trouble is debatable; when the government is offering hand outs, why wouldn’t homeowners desire to take advantage of such?
Those unable to qualify for government aid often consider other solutions such as 2nd mortgage loans.
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