WASHINGTON -- The U.S. government's latest plan to aid struggling homeowners could move as many as three million people into more-affordable mortgages, according to people familiar with the effort.
The proposal, which has been designed by the Treasury Department and Federal Deposit Insurance Corp., is close to being finalized. Estimated to cost between $40 billion and $50 billion, the plan would have the government agree to share a portion of any losses on a modified mortgage offered by lenders.
Funding for the plan could potentially come out of the $700 billion financial-rescue program authorized by Congress earlier this month. The plan, which was previewed during Congressional testimony last week, would represent one of the most aggressive and sweeping moves to address the nation's foreclosure mess, among the last elements of the crisis yet to be addressed by concerted government intervention.
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It's rare these days to sit through the evening news and not hear the words "housing crisis."But that shouldn't stop first-time homebuyers or keep homeowners from staying put, some local experts say. The Chester County Home-ownership Fair, held Saturday at Olivet United Methodist Church, brought together representatives from all levels of government, nonprofit organizations, banks and builders to educate the public about the home-buying process.
"Our particular interest is to try to educate homebuyers about how to get in a home and stay in a home," said Carolyn Johnson, of Community Impact Legal Services, who helped organize the event.
Johnson and others also led workshops on subjects such as understanding credit reports, applying for community assistance, and avoiding bad mortgages and predatory lending.
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