Who will the Fed's Suprime Mortgage Plan help?

The Fed's plan is designed to help as many as 1.2 million homeowners who are heading for trouble paying their subprime mortgages, but aren’t yet in foreclosure, haven’t already refinanced, or those who are more than 60 days delinquent on more than one payment over the past year. All the others won’t benefit from the Fed’s plan. The initiative is supposed to help stabilize falling home prices and stem foreclosures. Many charge that the plan amounts to a bailout for financially reckless homeowners. Others think the plan does not go far enough. The contention is sure to continue. Actually, the housing crisis has spread beyond the relatively small subprime universe. Prime adjustable loans which are not covered in the plan, hit their highest rate since 1972, and accounted for nearly 20% of the mortgages starting foreclosure in the third quarter! Whatever your personal opinion on the plan, one thing is for sure, the housing market isn’t likely to improve for quite some time. Let me know what you think. Post your thoughts to this Blog.