Understanding What the Foreclosure Plans Means for You and the Banks

The way we see it you likely have two questions: What does the foreclosure plan mean to me right this second? And what does this mean for banks and the stabilization of the economy?

Here's why you care about how it effects you: The LA Times' Maura Reynolds and the Washington Post's Renae Merle both have terrific question and answer pieces as to how the foreclosure plan impacts you. Meanwhile, the New York Times' Tara Siegel Bernard breaks down her q & a by focusing on the refinancing and loan modification components that is helpful in understanding how they work. We'll wager between these three resources you'll get all the answers you need.

Here's why you care about the banks: The Wall Street Journal's Dan Fitzpatrick and David Enrich have a great piece breaking down Wall Street's concern over the foreclosure plan. In a nut shell the angst centers around whether banks will take another huge hit to their already shaky bottom lines because the foreclosure program means modifying loans in a way that causes banks to receive less money. The debate is long term versus short term gain and pain. We suggest you read this to understand how Wall Street and policy makers see the program playing out.