President Obama had promised a new new plan on foreclosure moratorium which would give a buffer of about 90 days on home foreclosures by some banks. (The bigger plan consisted of even providing a $3000 credit for each job created etc).

But sticking to the foreclosure moratorium plan, the banks which have recieved the federal bail out money should in turn help the nbeleguered home owners by post poning the foreclosure by an additional 90 days. This would enable the home owner, who by the way would very much like to keep his/her home, to find additional sources of funds to meet those payments.

Basically I think, the whole problem has risen out of the fact that people are living beyond their means and the moment they lose their job, they find it extremely difficult to pay for their houses, their cars, their health insurance. It would be a good idea to have some sort of savings one can dip into during hard times but a consumption driven economy and lifestyle does not leave any room for that.

90 day moratorium on foreclosure

I have come across quite a few comprehensive articles on this and if you would like to read more on this, check out this article on – Obama Foreclosure Moratorium

Obama Foreclosure Plan 2009

The lady above, if she loses her job, she would lose her house as well and land up on the street.