$75 billion assigned by Obama to help homeowners

President Barack Obama threw a $75 billion lifeline, aimed at preventing 9 million homeowners from being evicted and at stabilizing housing markets. The lifeline exceeded administration suggestion on the matter by $25 billion.

Government support to mortgage giants Fannie Mae and Freddie Mac is being doubled as well, to $400 billion, in order to encourage them to refinance loans in which homes' market values have sunk below the amount the owners still owe.

Obama said, "Taken together, the provisions of this plan will help us end this crisis and preserve, for millions of families, their stake in the American Dream."He noted that lenders, borrowers and the government should "step back and take responsibility."

Moody's Economy.com revealed that 13.8 million out of nearly 52 million U.S. homeowners with mortgages owe more than their homes are worth after many months of declining prices. In theory they would have more opportunities to refinance their loans so that they have lower monthly payments. The $75 billion Homeowner Stability Initiative is aimed at providing incentives to mortgage lenders to cut monthly payments for persuading them to assist up to 4 million borrowers on the verge of foreclosure

Moreover, it would help people with houses whose market value has decrease below the principal still owed on the mortgages. These mortgages have traditionally been almost impossible to refinance. Nonetheless, the White House is aiming to do this, as long as their mortgages are owned or guaranteed by Fannie Mae or Freddie Mac.