When the housing bubble burst, many people were left with house they could not sustain. Interest rates increased abruptly, resulting in many homeowners being forced into foreclosure. It did not help that many banks presented people with unreasonable and hidden terms. These same banks were disinclined to help homeowners, when interest rates reached dizzying heights.
Luckily the Obama plan came to the aid of these homeowners with the Federal Housing Administration. This was the most successful method to prevent foreclosure as it forced banks to renegotiate terms. This method has helped thousands.
