PlusMcCain, Obama Differ on Housing CrisisMcCain, Obama Differ on Housing CrisisThe Associated PressHome foreclosures will keep rising next year no matter who is elected president in November. And the candidates differ on ways to rectify the problem. (July 5)[Notes:foreclosed home file]It's a growing worry for many Americans - will they be able to save their homes from foreclosure?Here's the bad news.The foreclosure crisis is expected to get worse before it gets better.....no matter who gets elected president.Experts predict home foreclosures will climb well into next year, and may not get better until 2010.Both Barack Obama and John McCain are calling for the Federal Housing Administration to provide new, cheaper mortgages to distressed homeowners.McCain's plan is only open to people who can show they were credit-worthy when they received their original loan.SOTJohn McCain (from March 25)"any assistance must be temporary and must not reward people who were irresponsible at the expense of those who weren't"McCain's plan would help between 200- to 400-thousand people.The Republican senator also favors the creation of a Justice Department task force to investigate potential wrongdoing in the mortgage industry.Obama's plan is more detailed, and would help about 400-thousand homeowners.The Democrat would make new mortgages available to people without good credit as long as they could show they're able to make the new payments. [Notes:graphic]Obama's plan also calls for a 10-billion-dollar prevention fund that would provide more counseling resources for homeowners....And a change in the bankruptcy laws so homeowners can renegotiate the terms of their mortgage.SOTBarack Obama"the principle is simple. If the government can bail out investment banks on Wall Street, we can extend a hand to folks who are struggling on Main Street"Experts say that while the McCain and Obama plans are helpful shorter-term responses, long-term strategies are needed to prevent a repeat of the foreclosure crisis. ___ ___, The Associated Press.
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