Obama plan to curb foreclosures launched

The new plan by US president Barack Obama to reduce the number of foreclosures has been launched.

It will see 75 billion USD (54 billion GBP) being spent on helping up to nine million households, by enabling banks to aid those on the brink of losing their homes and offering people in negative equity the chance to remortgage.

Commenting on the package, Mr Obama said: In the end, all of us are paying a price for this home mortgage crisis and all of us will pay an even steeper price if we allow this crisis to deepen."

This could mean that now is a good time to pick up a foreclosed bargain, as the supply of such properties could diminish if the plan works.

Figures from analysts RealtyTrac showed that across the US as a whole, 274,000 properties were foreclosed or had foreclosure notices placed on them during January of this year.

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