Opposing Solutions to the Housing Crisis

With the instability of home price and foreclosure rates, it's easy to see how the housing market is the root of the current economic problem. Along with their views towards the passing of the 700 billion dollar bailout plan, both Obama and McCain offer more solutions to the housing crisis.

Part of Obama's solution is to create a 10 billion dollar fund in an attempt to prevent foreclosures while also eliminating taxes and fees for families that are forced to sell their homes. Under Obama's plan, homeowners will get the chance to refinance a loan insured by the Federal Housing Administration. Obama also wants to implement a "credit card bill of rights" that will provide the disclosure of hidden credit costs.

McCain's plan is to help homeowners that meet certain criteria by giving them the chance to have their loans modified. McCain also offers financial assistance to borrowers dependent on lending reform. Along with these proposals, McCain recently created a mortgage plan that would direct the federal government to buy 300 billion dollars worth of bad mortgage loans from banks and homeowners.