Fiction: The stimulus plan is set up to rescue everyone who is having difficulty paying off their mortgage, including those who may have acted irresponsibility by buying homes they knew they couldn’t afford.
Fact: The stimulus plan will specifically help between 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure. It will also allow first-time homebuyers who purchase a house this year to become eligible to receive an $8,000 tax credit. What it won’t do is bailout greedy investors.
“It’s a plan that won’t help speculators or that neighbor down the street who bought a house he could never hope to afford,” said President Obama in his speech to Congress last week.