The President purposefully chose Florida to endorse the new stimulus plan and specifically visited Fort Myers. Fort Myers is one of the areas of the country hardest hit by the real estate crash. But Fort Myers is just one of many cities feeling battered by the ailing housing market and the credit crisis. Mortgage loans are being foreclosed at record levels. Many people were lured into purchasing more than they could afford during the real estate boom, as almost anyone who wanted credit could get it. Plenty of people, however, obtained reasonable mortgage loans they could afford and are now suffering from a drop in values and the unsteady economic times. The new President has pledged to lend a big hand to the beleaguered real estate market through the stimulus plan.
Although the details of the stimulus bill have not been announced, it is expected that any plan will include assistance for consumers struggling with their mortgage loans and incentives for lending institutions. The Treasury Secretary has said that plans to boost the housing sector must include lowering payments on mortgage loans for those struggling with them. Foreclosures on mortgage loans can be more costly to banks and investors than modifying those loans. So the administration has been meeting with banks and housing industry groups to come up with strategies to stem foreclosure rates. Some ideas that have been discussed are reducing interest rates on mortgage loans and deferring the principal on mortgage loans until the end of their terms. Regardless of the strategy, the focus is on helping those with mortgage loans that are not commensurate with their earnings. The President would like to support troubled homeowners before they foreclose on their mortgage loans.
Phoenix is the city chosen to be the backdrop for the President to release the specifics of the economic plan to help the housing market. Arizona is another state that has been struggling with a glut of unsold homes, loan defaults and significant drops in property values. Consumers and businesses appear to be at a stand still, as they wait to hear the details of government plans to help jump start the housing market and stem delinquencies on mortgage loans. Many banks have, in fact, decided to shelve foreclosures until the beginning of March, as they too wait to hear how the stimulus plan will affect their business.

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